Czech Q2 Economic Growth Slows Yet Beats Expectations

Sep 7, 2007 - The Czech economy posted an annual 6% growth in real terms in the second quarter, the statistics office said, Friday. This was slightly more than the 5.8% growth that economists were expecting and a little less than the 6.4% growth witnessed in the first quarter. The growth for the first quarter was revised up from 6.1% growth estimated initially.

The economy climbed a nominal 10% annually to CZK899.7 billion in the second quarter, while inflation was 4%.

Value added in manufacturing grew 10.5% annually in real terms in the second quarter, while the value added in the wholesale, retail and repair of motor vehicles sector jumped 14.2% and value addition in the real estate, renting and business activities sector climbed 11.3%.

Household final consumption expenditure at constant prices expanded 6.5% in the second quarter, pushed by higher expenditure outlays for motor vehicles, food, tobacco products, furniture and recreation. Gross fixed capital formation growth gained 4.2%, slowed down predominantly by investment in buildings and structures, which took up 41% of total fixed capital formation. Inventories witnessed increase in the second quarter, due to growth in inventories in manufacturing, power industry and construction sectors.

External trade in goods resulted in a nominal CZK 16.2 billion surplus. Export prices rose 1%, while import prices dropped 0.9%.

In sequential terms, the real GDP grew a seasonal and working day adjusted 1.4%, in the second quarter, compared to the growth of 1.5% in the previous quarter.

The EU27 and the euro area grew 2.8% and 2.5% in the second quarter, according to the Eurostat.