GDP Resources and Uses - 2nd quarter of 2019

Czech economy 0.7% up, quarter-on-quarter

30.08.2019
Code: 050056-19
 

According to the refined estimate, the gross domestic product was by 0.7% higher in the Q2 compared to the previous quarter; in the year-on-year comparison it increased by 2.7%. The Czech economy growth was supported mainly by the domestic demand.

The refined estimate confirmed that the Czech economy continued to grow in the Q2. The gross domestic product (GDP)  adjusted  for  price  effects  and  seasonally  adjusted[1]  was  by  0.7%  higher,  quarter-on-quarter (q-o-q). In the year-on-year (y-o-y) comparison, the GDP increased by 2.7%.

The gross value added (GVA) increased by 0.7%, q-o-q. The GVA was increasing mainly in construction (+1.9%) and in information and communication (+2.7%). In the y-o-y comparison, the GVA increased by 2.8%. The following contributed the most to its growth: a group of economic activities of trade, transportation, and accommodation and food service activities (0.7 p. p.). Manufacturing, despite its q-o-q decline, contributed 0.3 p. p. to the y-o-y growth of the GVA. The growth in manufacturing was 1.2%. Especially the following were successful: manufacture of transport equipment and manufacture of electrical equipment. On the contrary, manufacture of machinery, manufacture of metals, and manufacture of fabricated metal products declined. A y-o-y decrease of the GVA continued in mining and quarrying. In construction, the GVA increased by 3.6%. Most of economic activities of services were successful, especially accommodation and food service activities and information and communication.

On the demand side, the y-o-y growth of GDP in the Q2 was supported mainly by the domestic demand. The y-o-y growth of the GDP (2.7%) was contributed to by household consumption (1.1 p. p. [2]); contribution of the general government expenditure was 0.7 p. p. On the contrary, gross capital formation had a negative influence (−0.2 p. p.). External demand contributed 1.1 p. p. to the y-o-y growth of the GDP.

Final consumption expenditure increased by 0.8%, q-o-q, and by 2.9%, y-o-y. Of that, expenditure of households increased by 0.7% in real terms compared to the Q1 2019 and by 2.7% in comparison to the corresponding quarter of the previous year. Final consumption expenditure of the general government was 1.2% up, q-o-q, and 3.4% up, y-o-y.

Gross fixed capital formation (GFCF) dropped by 0.6%, q-o-q. In the y-o-y comparison, it increased by 0.9%. The GFCF was supported mainly by investment activity of the general government sector. As for the type of assets, investments in dwellings increased, y-o-y, followed by investments in other buildings and structures, and in intellectual property products. Lower investments were made in transport equipment and machinery.  

The external trade balance at current prices increased by CZK 13.9 bn, y-o-y, in the Q2. Exports of goods and services increased by 1.7%, q-o-q; in the y-o-y comparison it increased by 2.2%. The y-o-y growth of exports was driven mainly by trade in electronic and optical products and by export of transport equipment. Imports of goods and services dropped by 0.4%, q-o-q; in the y-o-y comparison it increased by 1.4%. The following contributed significantly to the y-o-y growth of imports: trade in basic metals and sub-deliveries for the automotive industry.

As for the price development in the Q2, the total GDP deflator reached 3.5%, y-o-y.

The volume of labour costs[3] increased by 7.6%, y-o-y, in the Q2 2019.

In the Czech Republic, in the Q2 2019, 5 468 thousand persons were employed[4] in average. The total employment remained unchanged, q-o-q; in the y-o-y comparison it increased by 0.8%.

 

Responsible head at the CZSO: Vladimír Kermiet, Director of the National Accounts Department, phone number (+420) 274 054 247, e‑mail: vladimir.kermiet@czso.cz
Contact person: Jan Benedikt, Head of the Quarterly Estimates Unit, phone number (+420) 274 052 750, e-mail: jan.benedikt@czso.cz
Used data sources updated as at: 22 August 2019
Time series: https://www.czso.cz/csu/czso/hdp_ts
The News Release web page: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate
Next Release will be published on: 14 November 2019 (GDP preliminary estimate for the third quarter of 2019)


[1] Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal, and calendar effects.

[2] Contributions to the GDP growth (imports for final use excluded).

[3] At current prices, not seasonally adjusted.

[4] In terms of national accounts.

 

  •      ahdp083019.docx

  • Annexes:
  • Table 1 Quarterly estimate of gross domestic product, seasonally adjusted
  • Chart 1 Gross domestic product and gross value added – quarter-on-quarter real growth rate, seasonally adjusted
  • Chart 2 Gross domestic product and gross value added – year-on-year real growth rate, seasonally adjusted
  • Chart 3 Gross domestic product in the Czech Republic and in the European Union – quarter-on-quarter real growth rate, seasonally adjusted
  • Chart 4 Contributions to year-on-year real GDP growth rate – seasonally adjusted
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Published: 30.08.2019
The data are valid as of the release date of the publication.


Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz