National Accounts - 1st quarter of 2011

GDP in Q1: +2.8%, y-o-y

09.06.2011
Code: r-5002-11
 




In Q1 2011 gross domestic product adjusted for price, seasonal and calendar effects increased by 2.8%, y-o-y, or by 0.9%, q-o-q, according to the refined estimate. A positive influence of contributions of external trade and capital formation to the GDP growth has been partially eliminated by drop of final consumption expenditure. Total employment increased by 0.7%, y-o-y.


* * *

Gross domestic product (GDP) adjusted for price, seasonal and calendar effects /*, increased by 2.8% in Q1, y-o-y, and by 0.9% compared to the previous quarter. On the demand side of the economy, it was mainly the external trade, which was the source of an economic boom; also revival of investment activity had a positive influence. The opposite effect came from a decrease of household and general government final consumption expenditure. It was manufacturing industry, which pushed the increase of gross value added formation the same as in previous quarters.

Employment (according to national accounts methodology) increased in Q1 by 0.7%, y-o-y; compared to Q4 2010 it remained virtually unchanged. Total development of employment was influenced especially by manufacturing industry, in which more than a quarter of all employed persons are working. Employment in this industry increased by 1.1%.

The preliminary GDP estimate of growth for Q1 2011 published on 13 May was increased by 0.3 percentage point (p.p.) both in the y-o-y and q-o-q comparison. The y-o-y and q-o-q corrections resulted from utilization of more complex data sources on the development of the business and general government sector and, partly, they were also a consequence of partial corrections of indicators for individual quarters of 2010.

GDP development at constant prices in 2010 (%)

Gross domestic product
Q1
Q2
Q3
Q4
2010
To the previous quarter
(seasonally and calendar effects adjusted)
+ 0.8
+ 0.6
+ 0.8
+ 0.5
x
To the same period of 2009
(seasonally and calendar effects adjusted)
+ 1.2
+ 2.3
+ 2.6
+ 2.7
+ 2.2
To the same period of 2009
(non-seasonally adjusted data)
+ 1.2
+ 2.9
+ 2.3
+ 3.0
+ 2.3

On the supply side of the economy the y-o-y growth of real gross value added (GVA) in Q1 2011 by 3.5% was owed especially to the contribution of manufacturing, which ensured almost four fifths of the increment. The GVA in manufacturing increased by 11.6%, namely in the following industries: manufacture of transport equipment, machinery, electrical and optical equipment. On the contrary, GVA fell mainly in agriculture, energy, and construction when compared to Q1 2010.

Individual demand components showed rather different contributions to the GDP development in Q1 2011:
  • The total 0.7% decrease of final consumption expenditure (comparing Q1 2011 to Q1 2010) was a consequence of lower y-o-y household expenditure by 0.5% and general government expenditure by 1.3%. Y-o-y lower demand had a negative impact on GDP by 0.5 p.p. The decrease of household expenditure was influenced mainly by a lower sales of food and non-alcoholic beverages, the consumption of which dropped by more than 5% at constant prices. At current prices, households spent by 2.3% more than a year before.
  • Growth of real gross fixed capital formation by 3.8% had a positive impact on GDP (+0.8 p.p.). Especially investments to transport equipment and also to buildings except dwellings increased. Nominal inventories increased during the Q1 2011 (without adjustment for seasonal and calendar effects) by CZK 21.6 billion, while in Q1 2010 it was by CZK 18.8 billion.
  • Positive balance of nominal external trade in goods and services of CZK 43.7 bn was by CZK 1.8 bn higher than in Q1 2010, despite rather marked worsening of the terms of trade by 2.7 p.p. The real export increased by 15.6%, while import grew only by 13.2%. Thus, external trade contributed to the GDP growth in the scope of 2.5 p.p.

In Q1 2011 GDP at current prices increased by 1.9%, y-o-y, to CZK 924.5 bn, the implicit deflator of GDP dropped by 0.9%, y-o-y, influenced above all by the influence of a markedly different development of export and import prices of goods. The deflator of export of goods increased only by 0.2%, y-o-y, while the deflator of import of goods was, as a result of commodity prices increase, higher by 3.4%. On the contrary, the deflator of household final consumption expenditure, which increased by 2.9%, influenced against the decrease of overall price level.
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*/ Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal and calendar effects.



Notes:
Contact: Jan Heller, phone (+420) 274 052 865, e-mail: jan.heller@czso.cz
In compliance with the Catalogue of Publications, the GDP preliminary estimate for Q2 2011 will be released on 16 August.



  • ahdp060911.doc

  • Annexes:
  • Table 1 Gross domestic product (in CZK million, indices)
  • Graph 1 GDP Development at Constant Prices
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Published: 09.06.2011
The data are valid as of the release date of the publication.


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