Czech Statistical Office. Illustrative image.
Prague – The Czech Statistical Office (ČSÚ) will today publish more detailed data on the development of the economy in the fourth quarter of last year. According to the latest data from the end of January, gross domestic product (GDP) fell by 0.3 percent compared to the third quarter. It was the second quarter-on-quarter decline in a row, thus the Czech Republic entered a technical recession. According to the statisticians, the quarter-on-quarter decrease was primarily due to lower expenditure on household final consumption.
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YoY, GDP grew by 0.4 percent in the fourth quarter. For the whole of last year, according to statistics, the economy grew by 2.5 percent. Year-round growth was supported by spending on gross capital formation and foreign demand, while household consumption had a negative effect.
Komerční banka analyst Jana Steckerová expects that the revised GDP estimate will confirm a quarter-on-quarter drop of 0.3 percent, followed by a drop in particular household consumption and weaker investment activity. “In the following quarters, the economy should gradually revive, when we expect its growth by 0.1 percent quarter-on-quarter in the first quarter and by 0.2 percent quarter-on-quarter in the second quarter,” she said.
