The Czech economy growth in the end of 2017 slightly accelerated – GDP 4.5% up in 2017

Published: 02.03.2018 Related countries:  U.S.A. U.S.A.

According to the refined estimate, the gross domestic product was by 0.5% higher in the Q4 2017 compared to the previous quarter; in the year-on-year comparison it increased by 5.2%. The GDP growth for the entire year 2017 was 4.5%.


The growth of the Czech Republic was supported mainly by the domestic demand. The gross domestic product (GDP) adjusted for price effects and seasonally adjusted in the Q4 was by 0.5% higher than in the previous quarter and compared to the corresponding quarter of 2016 it was 5.2% up.


The gross value added (GVA) increased by 0.6%, quarter-on-quarter (q-o-q), and by 5.4%, year-on-year (y-o-y). Manufacturing industry was successful; it was mainly owing to manufacture of motor vehicles, electrical equipment, metal structure, and chemical products.


On the demand side, increasing expenditure on fixed capital formation was the main GDP growth factor in the Q4. The y-o-y growth of GDP (5.2%) was supported by investment expenditure (1.6 p.p.), final consumption expenditure of households (1.3 p.p.), and external demand (1.2 p.p.).


Consumption expenditure of households on goods and services increased by 0.6%, q-o-q; in the y-o-y comparison it was 4.3% up.


The balance of external trade in goods and services at current prices reached the value of CZK 89.8 bn. Exports increased in real terms by 1.8%, q-o-q (7.6%, y-o-y); imports increased by 2.2% (8.3%, y-o-y). As usual, transport equipment contributed the most to the growth of exports. The growth of imports was driven mainly by machinery equipment, transport equipment, and electronics.


Total employment remained unchanged compared to the previous quarter and in the y-o-y comparison it was by 1.5% higher.


GDP resources and uses in 2017


The GDP for 2017 was by 4.5% higher than in 2016. External demand was the key factor of the year-long growth. The contribution of external demand to the GDP growth was 1.8 p.p., household consumption contribution was 1.4 p.p., and contribution of investment activity was 1.2 p.p.


The GVA in 2017 increased by 4.5% compared to the previous year. The economic growth has been reported across all activities of the Czech economy. Almost half of the GVA growth was generated by economic activities of industry (2.2 p.p.).


Final consumption expenditure of households increased by 4.0%, y-o-y, the most since 2007. External trade balance increased at current prices by CZK 8.0 bn, y‑o‑y, to CZK 364.5 bn. Gross fixed capital formation for the entire year 2017 was by 5.8% higher than in 2016. Increased investments went to machinery and equipment including transport equipment and to dwellings.


Total employment increased by 1.6%, y-o-y, to 5 331 thousand persons. In total, there were by 1.9% more hours worked than in 2016.