Prague - Czech economy grew faster in Q1 than in the June 4 estimate of the Czech Statistical Office (CSU), rising by 0.8 percent on the quarter and by 2.9 percent in annual terms, the CSU said in an updated estimate today.
The annual expansion was 0.4 percentage points higher than in the previous estimate.
The gross domestic product (GDP) development was positively influenced by increasing domestic and foreign demand as well as by a very low comparison basis of the last year.
The highest comparable GDP level ever recorded was seen for Q3 2008 before the impacts of the global financial crisis related to the fall of Lehman Brothers investment bank, the CSU said.
Jiri Moser of PwC said the Czech economy, its industry as well as other sector are profiting from recovering foreign demand, German in particular.
Starting with the second quarter of 2013, the economy has been growing in a quarter-on-quarter comparison. For the last four quarters, the growth reached 2.9 percent in total. Now it is only 1.0 percent below the record-high level in the third quarter of 2008.
Developments in the last two quarters show that GDP growth is accelerating, the CSU said.
Czech economy revival should continue as suggested by CEOs of major domestic companies. Most of them expect their business to grow this year, said Moser. Their expectations for the next three years are even better. They plan to hire more staff which might boost household spending appetite, Moser said.
All key expenditure components recorded a growth in total demand for goods and services in the first three months of the year. The final consumption expenditure of households was 1.5 percent higher year-on-year, fixed capital formation posted a rise of 5.8 percent, exports grew by 10.1 and imports by 9.5 percent, the CSU said.