GDP Resources and Uses - 2nd quarter of 2023

GDP decreased by 0.4%, y-o-y

29.08.2023
Code: 050056-23
 

According to the refined estimate, the gross domestic product decreased by 0.4%, year-on-year, in the Q2 2023. In the quarter-on-quarter comparison, it increased by 0.1%. The year-on-year GDP decrease was influenced by lower final consumption expenditure of households and a decrease in inventories, whereas final consumption expenditure of general government, gross fixed capital formation, and external demand had a positive effect.

The refined estimate confirmed a slight quarter-on-quarter (q-o-q) increase of the Czech economy, while in the year-on-year (y-o-y) comparison there was a decrease for the second successive quarter already. The gross domestic product (GDP)  adjusted  for  price  effects  and  seasonally  adjusted[1]  was  by  0.1%  higher, q-o-q. In the y-o-y comparison, the GDP decreased by 0.4%.

The gross value added (GVA) decreased by 0.2%, q-o-q, and increased by 0.6%, y-o-y, in the Q2 2023. A different development from the GDP was mainly caused by changes in the dynamics of paid subsidies on products since the beginning of the year. The q-o-q comparison of the GVA was the most negatively influenced by a group of economic activities of trade, transportation, and accommodation and food service activities (-1.0%). Positive effects came from industry with a 0.2% growth and financial and insurance activities (+2.5%).  

The y-o-y GVA growth (+0.6%) was the most contributed to by manufacturing +0.9 percentage point (p. p.; growth by 3.8%) and information and communication +0.4 p. p. (+5.6%). The following had a negative influence: construction -0.2 p. p. (-2.7%) and a group of economic activities of trade, transportation, and accommodation and food service activities, which contributed -0.2 p. p. (-1.3%).

“On the demand side, gross fixed capital formation and external demand were the main factors of the quarter-on-quarter GDP growth in the Q2 2023. Higher final consumption expenditure of households that increased for the first time after six quarters also had a positive contribution. On the other hand, a change in inventories had a significantly negative influence on the quarter-on-quarter comparison,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO) comments on the data. 

The y-o-y development of GDP was negatively affected by final consumption expenditure of households -1.9 p. p.[2] and by a change in inventories -2.5 p. p. Final consumption expenditure of general government +0.7 p. p., gross fixed capital formation +0.8 p. p., and external demand +2.5 p. p. had a positive influence.

Final consumption expenditure increased by 0.3%, q-o-q. In the y-o-y comparison, it decreased by 2.0%. Of that, final consumption expenditure of households increased by 0.2%, q-o-q. Expenditure on purchase of non-durables and services increased. Final consumption expenditure of households decreased by 4.5%, y-o-y. Final consumption expenditure of general government increased, q-o-q, by 0.3% and in the y-o-y comparison it was by 3.3%.

Gross fixed capital formation increased by 3.4%, q-o-q. In the y-o-y comparison, it increased by 2.5%. Increasing were investments in transport equipment, ICT, and in other machinery and equipment to which mainly the sectors of non-financial corporations and of the general government contributed. On the other hand, investments in dwellings and in other buildings and structures were decreasing. Change in inventories[3] was CZK +57.1 billion, which was by CZK 51.4 billion less compared to the corresponding quarter of the previous year.  

The international trade balance of goods and services at current prices reached the value of CZK 100.9 billion; thus, it was by CZK 101.0 billion higher than in the corresponding period of the previous year. Exports decreased in real terms by 0.5%, q-o-q. In the y‑o-y comparison, it increased by 4.5%, in which the development was influenced the most by an increase in export of electrical equipment and motor vehicles. Imports decreased by 1.2%, q-o-q; in the y-o-y comparison, imports increased by 0.8%.

 

As for the price development in the Q2 2023, the total GDP deflator increased by 10.2%, y-o-y.

The total employment[4]  increased by 1.0%, q-o-q; in the y-o-y comparison, it increased by 0.8%. In total, by 0.2% more hours were worked in the q-o-q comparison; in the y-o-y comparison, it was by 0.9% more.

 

[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, unless otherwise stated)

[3] at current prices, not adjusted for seasonal effects

[4] in terms of national accounts

 

Notes:
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, Quarterly Estimates Unit, phone number (+420) 274 052 750, e-mail: jan.benedikt@czso.cz
Used data sources updated as at: 22 August 2023
Time series: Quarterly national accounts (czso.cz)
The news release web page: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate
Next news release will be published on: 31 October 2023
(GDP preliminary estimate for the third quarter of 2023)

 

  •      ahdp082923.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
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Published: 29.08.2023
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