Czech Republic: Economic growth picks up notably to almost-seven-year high in Q1
May 15, 2015
In the first quarter, GDP increased a seasonally- and calendar-adjusted 3.9% over the same quarter last year, according to a preliminary estimate released by the Czech Statistics Office (CZO) on 15 May. If confirmed, the reading marked a notable acceleration compared to the milder 1.4% expansion registered in Q4 2014 and represented the fastest pace of growth that has been recorded since Q2 2008. In addition, the print markedly overshot the 2.0% increase the markets had expected. According to the CZO, the expansion in GDP was largely driven by an improvement in manufacturing, in particular the manufacture of motor vehicles, transport equipment as well as machinery and equipment. More complete and detailed data will be released on 29 May.
Sequential data show that GDP grew 2.8% in the first quarter, which by far exceeded the modest 0.4% expansion observed in Q4 and marked the largest quarter-on-quarter expansion on record.