Czech economy grows by 1.6 per cent in the third quarter

The Czech economy continued to grow in the third quarter. While households spent more, performance varied across individual sectors.

The Czech economy grew further in the third quarter. According to a preliminary estimate by the Czech Statistical Office (ČSÚ), gross domestic product (GDP), adjusted for price effects and seasonal variations, rose by 0.5 per cent compared with the previous quarter. Growth compared with the corresponding quarter of the previous year was 1.6 per cent.

Higher household consumption expenditure and the foreign trade balance were the main contributors to growth compared with the previous quarter. Gross capital formation, however, had a dampening effect.

Photo: ČSÚ

Consumption and foreign demand support growth

Year-on-year economic growth was driven by higher consumption expenditure, rising gross fixed capital formation and increasing demand from abroad. Changes in inventories, however, weighed on growth, explained Vladimír Kermiet, Director of the National Accounts Department at the ČSÚ.

Slight decline in manufacturing and construction

Compared with the previous quarter, gross value added was supported primarily by trade, transport, accommodation and food services, as well as information and communication. Manufacturing and construction, however, recorded a slight decline.

Industry, trade, transport, accommodation and food services, as well as information and communication, were the main contributors to year-on-year growth in gross value added.