Czech Republic: Economy posts robust annual growth rate in Q3
November 14, 2017
The Czech economy slowed from multi-year-high 2.5% growth in Q2 to 0.5% growth in Q3, in quarter-on-quarter seasonally- and price-adjusted terms, according to preliminary data released by the National Statistics Office (CSO) on 14 November.
In annual terms, the economy posted an impressive 5.0% growth figure in the third quarter of the year, which is above the prior quarter’s 4.7% expansion. Economic activity was buoyed in the third quarter by all main expenditure components of GDP, according to the CSO. Household consumption grew steadily and was likely underpinned by tight labor market conditions coupled with low inflation.
The positive narrative is likely to continue through year-end, translating into a higher pace of expansion in 2017 compared to the previous year. Household spending and external demand should underpin growth.
More detailed data will be released on 1 December.
Author: Jan Lammersen, Economist