Compared to the previous quarter, gross domestic product (GDP) increased by 0.5 percent in the first three months of the year. The revised estimate, published today by the Czech Statistical Office (CZSO), confirmed the figure released at the end of August.

Year-on-year GDP growth was the strongest since the second quarter of 2022, making it the highest in the past three years. According to earlier CZSO data, the main drivers were household consumption and changes in inventories. On the other hand, gross fixed capital formation had a negative impact, as did the lower year-on-year surplus in foreign trade.

Analysts expect the economy to grow by more than two percent for the full year, signaling an acceleration from last year’s one percent. The Ministry of Finance shares a similar outlook, projecting GDP growth of 2.1 percent in its August forecast. The Czech National Bank is more optimistic, expecting economic growth of 2.6 percent.

Real consumption also rose. The total real monetary and non-monetary income of households per capita increased by 0.1 percent quarter-on-quarter and by 0.3 percent year-on-year. Household real consumption per capita grew by 0.8 percent compared to the previous quarter and by 2.9 percent year-on-year. The average monthly income from employment reached CZK 52,560, which represents a real increase of 1.4 percent compared to the previous quarter and 4.1 percent year-on-year.

Source: seznamzpravy.cz