Published:18.12.2024
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GDP in the Czech Republic grew by 1.3% year-on-year in the third quarter. The economy was driven by consumer spending

Significant contribution to the quarter-on-quarter GVA growth came from the manufacturing sector, which grew by 2.5%. Year-on-year. Households remain cautious about making significant expenditures on long-term consumer goods.

The Czech economy continued its modest quarter-on-quarter and year-on-year growth in the third quarter. Gross domestic product (GDP) increased by 1.3% year-on-year and by 0.4% quarter-on-quarter during Q3 of this year.

This information was reported by the Czech Statistical Office (ČSÚ).

"Czech economy growth was largely driven by household consumption, particularly purchases of medium-term consumer goods such as clothing, footwear, and kitchenware," stated the report.

"It seems that real wage growth has boosted domestic demand. However, households remain cautious about making significant expenditures on long-term consumer goods," emphasised Jaroslav Sixta, Deputy Chairman of the Czech Statistical Office.

Foreign demand contributed little to the year-on-year economic growth and even hindered a more substantial quarter-on-quarter recovery.

Gross value added (GVA) increased by 0.8% quarter-on-quarter and by 1.0% year-on-year in Q3. Positive contributions from services, which benefited from the revival of domestic consumption, were evident in both comparisons.

However, the most significant contribution to the quarter-on-quarter GVA growth came from the manufacturing sector, which grew by 2.5%. Year-on-year, though, the manufacturing industry still lagged behind.

The year-on-year increase in consumer prices slowed to 2.3% in Q3. Price growth for transportation, alcoholic beverages, tobacco, and clothing and footwear was more moderate. Conversely, the decline in food prices eased.

Quarter-on-quarter, consumer prices rose by 0.5%. The year-on-year growth of both offer and realised housing prices accelerated, while the decline in agricultural producer prices slowed.

The average gross monthly nominal wage of employees rose by 7.0% year-on-year in Q3, reaching CZK 45,412. In real terms, the average wage increased by 4.6%.

Quarter-on-quarter, the nominal average wage grew by 1.9% in Q3. Overall employment stagnated quarter-on-quarter but was 0.4% higher year-on-year, mainly thanks to the services sector.

Source: https://www.byznysnoviny.cz/
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