The Czech economy grew by 2.8 percent year-on-year in the third quarter of this year, marking the fastest expansion since the second quarter of 2022. Compared with the previous quarter, the country’s gross domestic product (GDP) increased by 0.8 percent. The updated figures were published by the Czech Statistical Office (ČSÚ) and are slightly better than the preliminary estimate released at the end of October, which predicted year-on-year growth at 2.7 percent and quarter-on-quarter growth at 0.7 percent. Analysts had expected the revision to move slightly downward.

“The refined estimate confirms the continued growth of the Czech economy,” said Vladimír Kermiet, Director of the National Accounts Department at the Czech Statistical Office. According to the office, both domestic and foreign demand contributed to the year-on-year GDP growth, with household spending playing the most significant role.

Final consumption expenditure rose by 0.3 percent quarter-on-quarter and by 2.7 percent year-on-year. Household consumption increased by 0.3 percent compared with the previous quarter and by 3 percent year-on-year. “Government final consumption expenditure rose by 0.1 percent quarter-on-quarter and by 2 percent year-on-year,” the statistical office added.

Year-on-year economic growth was also supported by gross capital formation and a surplus in foreign trade. Gross fixed capital formation increased by 0.4 percent quarter-on-quarter and by 1.7 percent year-on-year. “Year-on-year growth was driven mainly by investment in housing and other buildings and structures, while investment in transport equipment declined,” the office noted. The trade surplus in goods and services rose by 10.1 billion koruna year-on-year to 128.3 billion koruna.

Gross value added (GVA) grew by 0.9 percent quarter-on-quarter and by 2.8 percent year-on-year in the third quarter. “Most sectors of the national economy performed well,” the statistical office reported. The year-on-year results were positively influenced especially by trade, transportation, accommodation and food services, as well as construction and information and communication activities. For quarter-on-quarter growth, the strongest contributions came from construction and information and communication activities, while industrial output remained flat.

Source: e15
Prepared by the team of foreign office CzechTrade South Korea (Seoul)