Czech Republic: Economy expands less than expected in Q4
February 15, 2011
In the fourth quarter, GDP expanded 2.9% compared to the same period the previous year, according to the flash estimate released on 15 February by the National Statistics Office. The expansion was slightly above the previous quarter's growth of 2.8% and represented the fastest pace since the second quarter of 2008. Nevertheless, the result undershot market expectations of a 3.2% increase as well as the Central Bank's 3.5% estimate. A quarter-on-quarter comparison, however, does not confirm the acceleration suggested by the annual figures, as GDP grew 0.5% over the previous quarter in seasonally and working-day adjusted terms, half the previous quarter's 1.0% expansion. For the full year 2010, the economy grew 2.3%, contrasting the 4.0% contraction observed in 2009, which had represented the worst economic performance in the country's modern history. Complete and more detailed data will be published on 11 March. Owing to the strong austerity measures adopted by the government, the Central Bank sees the economy growing a moderate 1.6% this year. For 2012, the Bank expects economic growth to accelerate to 3.0%.
Author: Ricardo Aceves, Senior Economist