Czech economics increased

Posted by bara 25/07/2014 at 12h28

In the first quarter of this year, the gross domestic product was increased by 2.9%, that means by 0.4 percentage point more than it was expected in the previous estimate published on 4 June. According to the refined estimate, the gross domestic product (GDP) for the first quarter 2014 adjusted for price effects increased by 2.9%, year-on-year, and in the quarter-on-quarter comparison by 0.8%. The GDP development was positively influenced by increasing domestic and foreign demand as well as very low comparison basis of the last year.

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Correction of the previous estimation year-on-year GDP growth from 2.5% to 2.9% caused mainly correct wrongly completed questionnaires and model calculations for statistically surveyed businesses with updated using administrative data on value added tax.

Historically the highest comparable GDP level was reached by the economy of the Czech Republic in the third quarter of 2008 right before impacts of the global financial crisis related to the fall of Lehman Brothers investment bank. Performance of the economy measured by q-o-q GDP changes underwent major fluctuations during the last five and half years. A sharp drop by 5.6% in total (that lasted for three quarters) was followed by gradual recovery by 4.8% in total (during 2 years). The second wave of recession that started in the third quarter of 2011 was longer (it lasted for 7 quarters), however, it was not so deep – the total decrease did not exceed 2.7%. Starting with the

In the sekond quarter of 2013, the economy is again growing, quarter to quarter; for the last four quarters it was by 2.9% in total and thus it is only 1.0% under the level of the maximum from the third quarter of 2008. The development during the last two quarters indicates that the GDP growth has been gradually accelerating.

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