Skyline of Prague, Czech Republic

Czech Republic Domestic Demand (ann. var. %)

GDP growth moderates in Q4

GDP growth moderated to 0.2% year on year in the fourth quarter, down from 1.5% in the third quarter, and below the preliminary estimate of a 0.4% increase. A sharper contraction in domestic demand was behind the deceleration.

Household spending tanked 5.5% in the fourth quarter, which followed the third quarter’s 5.2% drop, as consumers were hit by soaring inflation and tighter financing conditions, which weighed heavily on sentiment. Moreover, fixed investment growth slowed to 4.6% in Q4, from 7.2% in the previous quarter, dragged down by the economic impact of the war in Ukraine and global economic uncertainty. Meanwhile, public spending expanded 1.0% in Q4 (Q3: -1.9% yoy).

On the external front, exports of goods and services increased 9.7% in the fourth quarter, which was below the third quarter’s 11.1% expansion. Meanwhile, imports of goods and services growth rose to 7.6% in Q4 (Q3: +6.2% yoy).

On a seasonally-adjusted quarter-on-quarter basis, the economy contracted 0.3% in Q4, matching the previous quarter’s performance.

Czech Republic Domestic Demand (ann. var. %) Data

2017 2018 2019 2020 2021
Domestic Demand (ann. var. %) 4.3 4.9 3.2 -5.4 8.4

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