National Accounts - 2nd quarter of 2012

GDP in Q2 2012 decreased by 1%

In Q2 2012, the gross domestic product adjusted for price, seasonal, and calendar effects decreased according to the refined estimate by 1.0%, year-on-year (y-o-y), and by 0.2%, quarter-on-quarter (q-o-q).

In Q2 2012, according to the refined estimate, the gross domestic product (GDP) adjusted for price effects and seasonally adjusted ^*/ decreased by 1.0%, y-o-y (preliminary estimate from 14 August forecasted drop by 1.2%) and compared to Q1 2012 by 0.2%. Together with the estimate for Q2, also the decrease of GDP for Q1 published on 8 June has been refined based on newly obtained statistical and administrative data (in the y-o-y comparison from 0.7% to 0.5%; in the q-o-q comparison from 0.8% to 0.6%). In the total for the first half-year of 2012, the GDP generated in the Czech economy was by 0.8% lower than in the same period of the previous year.

The economy performance measured by the y-o-y and q-o-q development of the gross domestic product decreased in the Q2, especially due to continuing decrease of the domestic demand – the external trade surplus was not high enough to compensate it. The Czech economy has been coping with this gradually deepening problem already for more than a year.

On the supply side of the economy, the gross value added (GVA) decreased by 0.3%, y-o-y; contribution of individual industries to its generation has further differentiated. In the y-o-y comparison, the best results were achieved again by manufacturing, in which the GVA increased by 4.8%. The following contributed positively to an increase of the GVA: manufacture of machinery and equipment and manufacture of electrical equipment; on the contrary, the following have not reached the level of 2011: manufacture of food products, manufacture of rubber and plastic products, and manufacture of transport equipment. The deepening drop of the GVA was in construction, in which the GVA decreased by more than 10%, y-o-y; much worse results compared to 2011 were recorded also in sale and repair of motor vehicles, retail trade, telecommunications and insurance activities.

The y-o-y development of GDP was negatively influenced by taxes on products, in which mainly their main component – value added tax – caused the overall decrease at constant prices by 5.9%.

The y-o-y and q-o-q drop of the overall demand was contributed to mainly by final consumption expenditure and within that it was mainly expenditure of households. The final consumption expenditure of households decreased by 3.3% compared to the same period of the previous year and by 1.1% compared to Q1 2012. In the y-o-y comparison, household expenditure at constant prices decreased by almost a fifth for consumer durables. Households spent less than a year ago also for food, non-alcoholic and alcoholic beverages, tobacco products, household equipment, energies, transport and postal services, and other items.

Final consumption expenditure of entities included in the general government sector dropped by 0.9%.

Gross fixed capital formation remained in the Q2 on the level of the previous year; however, the structure has markedly changed. While expenditure on machinery increased by more than ten percent, investments in dwellings dropped by that amount. Investors spent for transport equipment by 5.1% less and for other buildings and structures by 3.8% less.

Exports of goods and services increased at constant prices by 3.9%, while imports only by 1.1%. The active balance at current prices increased from CZK 37.5 bn in 2011 to the current CZK 50.4 bn (of which CZK 42.1 bn at goods and CZK 8.3 bn at services). A higher quarterly active balance (CZK 57.9 bn) was achieved by the Czech economy only in the Q1 2012.

The overall price level measured by the GDP implicit deflator increased by 1.4%, y-o-y, in Q2 2012, of which household final consumption expenditure by 3.4%, fixed capital by 1.7%, exports by 3.4%, and imports by 4.8%.
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^*/ Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal, and calendar effects.


Contact person: Jan Heller, Director of the Quarterly National Accounts Department, phone number (+420) 274 052 865, e-m ail: jan.heller@czso.cz
Used data sources updated as at: 4 September 2012
Related CZSO web page: /csu/czso/hdp_ts
Next News Release will be published on: 15 November 2012 (GDP preliminary estimate for the third quarter of 2012)

Published: 07.09.2012
The data are valid as of the release date of the publication.