Czech Republic: GDP improves markedly in Q4
February 14, 2014
In the fourth quarter, GDP expanded a seasonally and calendar-adjusted 0.8% over the same quarter of the previous year according to the preliminary data released by the Czech Statistical Office (CSO). GDP bounced back in Q4 from the 1.2% contraction registered in Q3 and recorded the first expansion in two years. More complete and detailed data will be released on 6 March.
According to the CSO, the increase in GDP in Q4 was driven by a notable improvement in domestic demand, particularly in fixed investment. Regarding external demand, exports of goods and services increased markedly in the last quarter of 2014. Imports, however, grew at a similar pace as exports. Consequently, the net contribution from the external sector to overall economic growth was positive, but not substantial.
Seasonally-adjusted data showed that GDP expanded 1.6% in the fourth quarter, which came in well above the 0.2% increase observed in the third quarter.
The Czech National Bank expects the economy to expand 2.2% in 2014. For 2015, the Bank sees economic growth picking up to 2.8%. FocusEconomics Consensus Forecast panelists expect the economy to expand 1.7% in 2014, which is unchanged over the previous month's projection. For 2015, the panel sees the economy increasing 2.4%.
Author: Ricardo Aceves, Senior Economist