GDP in Czech Republic
Czech Republic - GDP (billions of Euros)
GDP growth moderates in Q3
GDP growth moderated to 1.7% year on year in the third quarter, down from 3.6% in the second quarter, but above the preliminary estimate of a 1.6% increase. A sharp downturn in domestic demand was behind the deceleration.
Household spending tanked 5.9% in the third quarter, which contrasted the second quarter's 0.2% expansion, as consumers were hit by soaring inflation, tighter financing conditions and plunging sentiment. Moreover, fixed investment growth slowed to 4.6% in Q3, from 6.7% in the previous quarter, also weighed down by the economic impact of the war in Ukraine and heightened global economic uncertainty. Additionally, public spending fell 1.2% in Q3 (Q2: +1.8% yoy).
On the external front, exports of goods and services increased 10.5% in the third quarter, which was above the second quarter's 1.6% expansion, underpinned by rising foreign sales of electrical equipment and motor vehicles. Meanwhile, imports of goods and services growth rose to 6.2% in Q3 (Q2: +1.8% yoy).
On a seasonally-adjusted quarter-on-quarter basis, the economy contracted 0.2% in Q3, swinging from the previous quarter's 0.4% growth but above the preliminary release of a 0.4% drop.
Available data points to a further loss of momentum in Q4, as in October and November the manufacturing PMI remained entrenched in contractionary terrain, while both businesses and consumers grew more pessimistic on average. On top of this, higher interest rates and a cooling housing market spell trouble for activity. As for next year, the economy should expand at a subdued rate, as domestic demand is hit by still-elevated inflation and high financing costs, while the external sector suffers the impact of a Europe-wide economic slowdown. Some support to growth will be provided by EU Next Generation funds, however. Volatile energy prices due to the war in Ukraine represent a downside risk.
FocusEconomics analysts see GDP expanding 0.4% in 2023, which is down 0.5 percentage points from last month’s forecast, and 2.8% in 2024.
Czech Republic - GDP (EUR bn) Data
|GDP (EUR bn)||169||176||192||207||220|
5 years of economic forecasts for more than 30 economic indicators.
Czech Republic Facts
|Bond Yield||1.64||-1.85 %||Dec 31|
|Exchange Rate||22.76||-0.66 %||Dec 30|
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December 2, 2022
GDP growth moderated to 1.7% year on year in the third quarter, down from 3.6% in the second quarter, but above the preliminary estimate of a 1.6% increase.
November 25, 2022
The economic sentiment indicator, published by the Czech Statistical Office (CSO), rose to 90.1 in November from 89.8 in October. Consumer sentiment increased in November, with the index rising to 76.0 from 71.9 in October, which marked the weakest reading on record.
November 11, 2022
Inflation came in at 15.1% in October, which was down from September’s 18.0%.
November 9, 2022
Industrial output grew 8.3% year on year in working-day adjusted terms in September, which was above August's 7.2% increase.
November 4, 2022
The economy expanded 1.6% in seasonally adjusted year-on-year terms in Q3, following Q2’s 3.7% increase.