The growth was driven by household and government spending. However, the data also confirmed the widely discussed decline in the manufacturing sector.

Domestic demand supported the growth, particularly higher household final consumption expenditure. In contrast, foreign demand declined. On the other hand, gross capital formation had a primarily negative impact. The development of gross value added was mainly boosted by the trade, transportation, accommodation, and food service sectors.

The recovery of the Czech economy is expected to continue this year. The Ministry of Finance forecasts GDP growth of 2.3% in 2024, while analysts also anticipate growth of around 2%.

Source: e15.cz