Czech Republic: Economic activity slows in Q1 but remains robust
Annual GDP growth slowed from 5.5% in Q4 to 4.5% in Q1 in seasonally- and price-adjusted terms, according to preliminary data released by the Czech Statistical Office (CSO) on 15 May. Despite the moderation, the first-quarter expansion remained robust. The main contributors to the Q1 figure were capital spending and household consumption growth, which was likely underpinned by solid gains in employment and wages. On a quarter-on-quarter basis, GDP growth also slowed from 0.8% in Q4 to 0.5% in Q1.
Despite slightly weaker growth figures in Q1, the outlook remains positive. A tight labor market and robust external demand should underpin growth going forward. More detailed data will be released on 1 June.