Initially, the CZSO reported that the year-over-year growth of gross domestic product (GDP) was 1.6% in the third quarter and the year-over-year decrease was 0.4%.
According to statistics, year-on-year growth in GDP was mainly supported by foreign demand and gross fixed capital creation. Household consumption spending has had a negative impact on the economy.
“On the demand side, domestic demand was the main factor in the quarterly decline in GDP in the third quarter. In particular, household final consumption expenditure decreased. External demand had a positive effect,” said Vladimír Kermiet , Director of the National Accounts Department of the CZSO.
Inflation in the Czech Republic was the 15th highest in Europe in October
Economic
Household final consumption expenditure decreased by 3.2 per cent on a quarterly basis and by 5.9 per cent on an annual basis, both for the purchase of durable and non-durable goods. Final consumption expenditure by public institutions also decreased, but to a more modest extent: by 0.8 per cent on a quarterly basis and by 1.2 per cent on an annual basis.
Gross value added (GVA), the result of the difference between the output of goods and services and the cost of production, increased by 1.4% year over year in the third quarter and decreased by 0.2% quarter on quarter . On an annual basis, for example, it strengthened industry by 3.2% or information and communication activities by 4.6%.
In contrast, construction weakened by 0.7 percent, trade, hospitality and transport worsened by 1.3 percent and agriculture, forestry and fishing by 2.4 percent.
Despite a slight improvement in the economic performance compared to the preliminary estimate, the third quarter data still represent a significant slowdown in GDP growth. In the second quarter of this year, the economy grew 3.6% year-on-year, according to revised data, and 4.6% in the first quarter.
In a quarter-over-quarter comparison, the economy contracted in the third quarter after five consecutive increases. It grew 0.4% qoq in the second quarter of this year and 0.6% in the first quarter.
According to the analysis, real wages in the Czech Republic are falling the most since the state was established
Economic
