The Czech economy grew by 0.6 percent year-on-year in the second quarter of this year. This was announced by the Czech Statistical Office (ČSÚ) in a more precise estimate. In a preliminary estimate from the end of July, statisticians initially said that gross domestic product (GDP) rose by 0.4 percent compared to last year. Quarter-on-quarter GDP increased by 0.3 percent according to both estimates.

"The main factors of growth were mainly rising expenditure on final consumption and the formation of gross fixed capital. On the contrary, the change in the stock level had a negative effect," said Vladimír Kermiet, director of the National Accounts Department of the CZSO.

Expenditure on final consumption increased by two percent year-on-year, of which consumption by households by one percent and consumption by government institutions by 4.3 percent. For households, expenditure on the purchase of short-term consumption items and services increased year-on-year. Gross fixed capital formation grew by 0.7 percent year-on-year. Investments in housing, other buildings and structures, means of transport and intellectual property products increased.

The balance of foreign trade in goods and services reached 143 billion crowns in current prices, which was 45.4 billion more than in the same period of the previous year. Exports increased by 0.4 percent year-on-year, mainly thanks to exports of services, while imports fell by 1.5 percent year-on-year.

Gross value added (GVA), the result of the difference between the production of goods and services and the cost of production, rose 0.5 percent quarter-on-quarter and 0.1 percent year-on-year in the second quarter. Trade, transport, accommodation and hospitality, with growth of 2.3 percent, and money and insurance, which strengthened by 7.3 percent, had a positive impact on the year-on-year development. Industry, which weakened by 2.5 percent, had a negative impact, as did construction, which fell by 2.4 percent.

While in 2022 year-on-year quarterly GDP growth was still in the order of one percent, since the beginning of last year they have been in the order of tenths of a percent at most. In the third quarter of 2023, statisticians recorded a decline in the economy by 0.4 percent, and in the last quarter of last year the economy stagnated year-on-year.

Source: E15

CzechTrade Thailand