Czech Republic: Year-on-year GDP growth accelerates in Q4, but underlying momentum wanes somewhat
A second release confirmed that the economy grew 3.6% in seasonally-adjusted year-on-year terms in the fourth quarter, accelerating slightly from the 3.5% expansion logged in the third quarter.
The acceleration was driven by strengthening private consumption and fixed investment. Household spending increased 9.3% annually in the fourth quarter, which was above the third quarter’s 6.5% expansion. In addition, fixed investment growth sped up to 3.5% in Q4, from 2.2% in Q3. Meanwhile, government spending growth decelerated to 0.1% in Q4 (Q3: +3.0% yoy).
On the external front, exports of goods and services fell 5.7% on an annual basis in the fourth quarter, which followed the third quarter’s 2.1% contraction. In addition, growth in imports of goods and services slowed to 4.0% in Q4 (Q3: +8.7% yoy).
On a seasonally-adjusted quarter-on-quarter basis, economic growth slowed to 0.9% in Q4, following the previous quarter’s 1.6% expansion.