Czech Republic: Economic growth slows marginally in Q1
May 15, 2019
Annual GDP growth slowed a notch in the first quarter of the year in seasonally- and price-adjusted terms (Q1 2019: +2.5%; Q4 2018: 2.5%), broadly in line with market expectations.
According to the preliminary release by the Czech Statistical Office (CSO), external demand and household spending, which has been propped up by the overly tight labor market and solid wage growth, led the expansion in Q1. Surprisingly, manufacturing also contributed strongly to the upturn, contrasting the relatively downbeat monthly showings by the industrial sector.
On a quarter-on-quarter basis, GDP growth also decelerated from 0.8% in Q4 to 0.5% in Q1.
More detailed national accounts data will be released on 31 May.
Author: Javier Colato, Economist