Czech Republic: Industrial production slows in December
February 6, 2012
In December, industrial output expanded 2.0% over the same month the previous year, which came in below the 5.4% increase observed in November as well as market expectations, which had industrial production growing 2.7%. The December slowdown reflected a deceleration in manufacturing as well as a large contraction in electricity supply, as mining and quarrying improved over the previous month. A month-on-month comparison points to an even sharper deterioration than the slowdown suggested by the annual figures, as industrial output contracted a seasonally adjusted 0.85% over the previous month, which contrasted the 2.58% expansion observed in November. In the full year 2011, industrial production grew 6.9%, which was well below the 10.3% growth rate registered in 2010. Industrial production is likely to continue to slow throughout this year. Meanwhile, the Central Bank revised its growth projections and now expects GDP growth to remain flat this year, which is down from its previous 1.2% estimate. For 2013, the Bank sees the economy expanding 1.9%, also down from its previous 2.7% projection.
Author: Ricardo Aceves, Senior Economist