Czech economy could rise 2,2 percent this year

According to the Czech Statistical Office (ČSÚ), the Czech GDP rose 2,4 percent in year-over-year comparison and 0,4 percent in the month-over-month comparison in the third quarter of this year. The official result doesn’t differ from the preliminary estimate and our commentary on it is similar to the one published some time ago, the Confederation of Industry’s analyst Bohuslav Čížek wrote.

The Czech economy has preserved its growth trajectory. The result is rather solid and contributes to the stabilization of the economy. Fix investment and household consumption are rising further, although their tempo is slower than in the second quarter of the year.

The contemporary investments‘ development represents a positive sign, which is characteristic for a growing economy on the way to stabilization, but it continues to be a rather sensitive component among the growth indicators.

The foreign trade rose as well, though the import tempo was a little bit higher year-over-year. A key factor to the GDP growth has been, as well as in the second quarter of 2014, the industry which increased 5,2 percent in the year-over-year comparison and 6,9 percent in the month-over month comparison. Most other sectors have recorded a growth as well.

Our prognosis of the real GDP growth stays on the 2,2 percent level for the whole year 2014, because we are awaiting a moderate slowing down of the growth tempo because of a lower comparative basis. A lower than expected efficiency of the eurozone could have some influence on the Czech economy as well.