Czech Republic: Economy moderates in second quarter
August 16, 2011
In the second quarter, GDP expanded 2.4% over the same period last year, according to the flash estimate released by the National Statistics Office on 16 August. The quarterly reading was below both the 2.8% increase observed in the first quarter and the Central Bank's growth estimate of 2.5%, but overshot market expectations of a 2.3% rise. On a quarter-on-quarter basis, GDP rose a seasonally adjusted 0.2%, which was below the 0.9% expansion observed in the first quarter. A complete and more detailed data set will be published on 9 September. The Central Bank sees the economy growing 2.1% this year, while for 2012 the Bank revised its growth estimates and now expects the economy to expand 2.2%, down from its previous 2.8% estimate. Monetary authorities argued that the austerity measures adopted by the government this year are likely to continue to dent economic growth in the coming year.
Author: Ricardo Aceves, Senior Economist