GDP in Czech Republic
Czech Republic - GDP (billions of Euros)
Economy expands at slower pace in Q3
The economy expanded 2.8% in seasonally-adjusted year-on-year terms in the third quarter, following Q2’s 8.1% increase, supported by progress on the vaccination front and easing restrictions but weighed down by a waning base effect. Meanwhile, output increased 1.4% on a seasonally-adjusted quarter-on-quarter basis in Q3. The expansion followed the 1.0% rise recorded in Q2.
Although a detailed breakdown is yet to be released, household and capital spending, as well as government consumption, made positive contributions to growth, while external demand negatively affected the reading. On the supply side, the trade, transportation, accommodation and food services sectors led the recovery, while the manufacturing sector contracted, likely restrained by supply bottlenecks.
More detailed national accounts data for Q3 will be released on 30 November.
Commenting on the growth outlook in the remainder of the year and in 2022, Jiri Polansky, analyst at Erste Bank, said:
“The Czech economy is now experiencing a slowdown, which will intensify further in the fourth quarter. This is mainly due to problems in the automotive industry, where there has been a strong reduction in production, as well as rising energy prices, which have been forcing several firms to reduce their production. In addition, rising energy prices may also have a negative impact on household consumption. According to our current forecast, we expect GDP growth to come in at 3.3% this year and 4.7% next year. However, recent data indicate GDP growth should be lower this year (around 2.5%–3.0%) and slightly higher in 2022. But this will strongly depend on whether the supply of components for the automotive sector will be improving next year.”
FocusEconomics analysts see GDP expanding 4.6% in 2022, which is down 0.1 percentage points from last month’s forecast, and 3.6% in 2023.
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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November 24, 2021
The economic sentiment indicator, published by the Czech Statistical Office (CSO), dipped to 95.2 in November from 95.3 in October, marking the worst print since April. Consumer confidence weakened again in November, with the index plunging to 90.4 from 98.5 in October.
November 11, 2021
Consumer prices jumped 1.02% from the previous month in October, following September’s 0.17% rise.
November 8, 2021
Industrial production declined 4.1% year-on-year in working-day adjusted terms in September (August: -1.4% yoy).
November 5, 2021
At its 4 November meeting, the Board of the Czech National Bank (CNB) decided to raise the two-week repo rate by 125 basis points to 2.75%, marking the fourth consecutive hike and surprising markets on the upside.
November 3, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) dropped to 55.1 in October from September's 58.0.