Czech Republic: Growth down a notch in Q2
August 14, 2019
The economy grew 2.7% in year-on-year, seasonally- and price-adjusted terms in the second quarter, marginally down from the 2.8% upturn logged in the first quarter, according to a preliminary release by the Czech Statistical Office (CSO) on 14 August.
Household spending, which has been propped up by the extremely tight labor market and solid real wage growth, was the main driver of the expansion. External demand also contributed strongly to the outturn, despite the wider European slowdown. On the supply side, buoyant activity in the trade, transportation and storage, and hospitality industries underpinned growth.
On a quarter-on-quarter basis, GDP growth came in at 0.6% in Q2, matching Q1’s expansion.
More detailed national accounts data will be released on 30 August.
Author: Javier Colato, Economist