Prague - The Czech economy in the second quarter of this year stagnated against the first quarter, as expected the Czech Statistical Office CSU) said today.
In year-on-year terms, Czech gross domestic product (GDP) rose by 2.7 percent, in comparison with the original estimate of 2.6 percent released by the CSU in mid-August.
"The overall performance of the economy of the CR remained unchanged in the Q2 2014, quarter-on-quarter. Final consumption expenditure remained unchanged as well," the CSU said.
Expenditure on capital formation increased by 2.3 percent.
Imports increased by 0.3 percent quarter-on-quarter, while exports dropped by 0.4 percent.
Foreign trade in Q2, compared with Q1, stopped being the main factor of the GDP formation, the CSU said.
Year-on-year, imports grew by 11.3 percent and exports by 8.9 percent.
Czech economic development in Q2 lower than expected by CNB
Czech economic development in Q2 was 0.1 percentage point lower yr/yr and 0.2 percentage points lower qtr/qtr compared to the central bank´s (CNB) estimate, Petr Vojtisek, a deputy head of the CNB´s monetary and statistics section, said today.
Statisticians said in a revised estimate today, just like in the first estimate, that the country´s economy stagnated in the second quarter compared to Q1.
In annual terms, the revised estimate improved a gross domestic product (GDP) growth from 2.6 to 2.7 percent.
The downside deviation from the CNB´s forecast of annual GDP expansion in Q2 reflected some opposing effects, said Vojtisek.
The CNB´s prediction of a markedly higher growth in investments has been fulfilled even though gross fixed capital formation was rising at a slower pace than predicted.
The higher-than-expected formation of inventories, however, almost fully offset the deviation. A contribution of the government consumption was lower than expected while household consumption was slightly higher compared to the CNB´s estimate, said Vojtisek.
"All in all, the CNB´s estimate that second-quarter annual GDP growth will be mildly lower compared to Q1 and will be driven by domestic demand items has been fulfilled," Vojtisek said.
The new data confirm that a reviving rise of household consumption and fixed capital seen at the end of last year is of a longer-term nature and is related to a positive change in expectations of domestic economic entities, Vojtisek said.
Recovering foreign demand and easing of the central bank´s monetary policy through the crown´s depreciation have contributed to the change, he added.
In the most recent forecast, the CNB said he expects a nearly 3 percent GDP expansion this year.
"Similar growth rates will be recorded in the next two years as well," said Vojtisek.