The Czech economy expanded by 2.8 per cent year-on-year in the third quarter of this year, marking the fastest growth since the second quarter of 2022. Compared with the previous quarter, gross domestic product (GDP) increased by 0.8 per cent.

The updated figures were published by the Czech Statistical Office (CZSO). They are slightly stronger than the initial estimate from late October, which indicated year-on-year growth of 2.7 per cent and quarter-on-quarter growth of 0.7 per cent.

“The revised estimate confirms the continued growth of the Czech economy,” said Vladimír Kermiet, Director of the National Accounts Department at the CZSO.

According to the CZSO, the year-on-year increase in GDP was supported by both domestic and foreign demand, with household spending making the most significant contribution to growth.

Final consumption expenditure rose by 0.3 per cent quarter-on-quarter and by 2.7 per cent year-on-year. Household expenditure increased by 0.3 per cent quarter-on-quarter and by 3 per cent year-on-year.

“Final consumption expenditure of government institutions increased by 0.1 per cent quarter-on-quarter and by 2 per cent year-on-year,” the CZSO added.

Year-on-year economic growth was also driven by gross capital formation and a surplus in foreign trade. Gross fixed capital formation rose by 0.4 per cent quarter-on-quarter and by 1.7 per cent year-on-year.

“Year-on-year growth was recorded mainly in investment in dwellings and other buildings and structures, while investment in transport equipment declined,” the CZSO reported.

The foreign trade surplus in goods and services increased by CZK 10.1 billion year-on-year to CZK 128.3 billion at current prices.

Gross value added in the third quarter grew by 0.9 per cent quarter-on-quarter and by 2.8 per cent year-on-year.

“Most branches of the national economy performed well,” the CZSO noted.

Year-on-year developments were positively influenced in particular by trade, transport, accommodation and food services, as well as construction and information and communication activities. Quarter-on-quarter growth was driven most strongly by construction and information and communication activities, while industry remained flat, the CZSO said.

Source: https://www.byznysnoviny.cz
Author: CzechTrade Sydney