GDP Resources and Uses - 3rd quarter of 2019

Czech economy 0.4% up, quarter-on-quarter

29.11.2019
Code: 050056-19
 

According to the refined estimate, the gross domestic product was by 0.4% higher in the Q3 compared to the previous quarter; in the year-on-year comparison it increased by 2.5%. The Czech economy growth was supported by both the domestic and external demand.

The refined estimate confirmed that the Czech economy continued to grow in the Q3. The gross domestic product (GDP)  adjusted  for  price  effects  and  seasonally  adjusted[1]  was  by  0.4%  higher,  quarter-on-quarter (q-o-q). In the year-on-year (y-o-y) comparison, the GDP increased by 2.5%.

The gross value added (GVA) increased by 0.3%, q-o-q. The GVA was increasing the most in information and communication (+1.9%), professional and administrative activities (+0.9%), and real estate activities (+0.9%). A slight decrease occurred in industry. In the year-on-year comparison, the GVA increased by 2.4%. The following contributed the most to its growth: a group of economic activities of trade, transportation, and accommodation and food service activities (+0.6 p. p.) and information and communication (+0.4 p. p.). Manufacturing contributed 0.3 p. p. to the y-o-y growth of the GVA. The growth in manufacturing was 1.0%. Especially the following were successful: manufacture of transport equipment and manufacture of electrical equipment. On the contrary, in manufacture of machinery and manufacture of electronic and optical products decline continued. A y-o-y decrease of the GVA continued also in mining and quarrying. In construction, the GVA increased by 4.1%. Most of economic activities of services were successful, especially information and communication, which grew by 8.1%, y-o-y.

On the demand side, the y-o-y growth of GDP in the Q3 was supported by both the domestic and external demand. The y-o-y growth of the GDP (2.5%) was contributed to by household consumption (1.0 p. p.[2]). Contribution of the general government expenditure was 0.7 p. p. Gross capital formation had a negative influence (−0.1 p. p.); investment expenditure recorded a negative contribution for the first time since the Q2 2017 (−0.3 p. p.). External demand contributed 1.0 p. p. to the y-o-y growth of the GDP.

Final consumption expenditure increased by 0.3%, q-o-q, and by 2.6%, y-o-y. Of that, expenditure of households remained unchanged in real terms compared to the Q2 2019 and compared to the Q3 2018 they increased by 2.3%. Final consumption expenditure of the general government was 1.0% up, q-o-q, and 3.3% up, y-o-y.

Gross fixed capital formation (GFCF) decreased by 0.3%, both q-o-q and y-o-y. As for the type of assets, especially investments in dwellings and investments in other buildings and structures increased y-o-y. On the contrary, the y-o-y decrease in investments in machinery and equipment deepened even more.

The external trade balance at current prices increased by CZK 17.8 bn, y-o-y, in the Q3. Exports of goods and services decreased in real terms by 0.4%, q-o-q; in the y-o-y comparison it increased by 1.8%. The year-on-year growth was contributed to mainly by export of transport equipment. Imports of goods and services increased by 0.4%, q-o-q; in the y-o-y comparison it increased by 1.0%. The following contributed significantly to the y-o-y growth of imports: trade in machinery and sub-deliveries for the automotive industry.

As for the price development in the Q3, the GDP deflator reached 3.6%, y-o-y.

The volume of labour costs[3] increased by 6.8%, y-o-y, in the Q3 2019.

In the Czech Republic, in the Q3 2019, 5 455 thousand persons were employed[4] in average. The total employment decreased by 0.2%, q-o-q; in the y-o-y comparison it increased by 0.6%.

 

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: 26 November 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 February 2020 (GDP preliminary estimate for the fourth 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.

 

  •      ahdp112919.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: 29.11.2019
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