National Accounts - 4th quarter of 2011

GDP in 2011 increased by 1.7%

09.03.2012
Code: r-5002-11
 




In Q4 2011, gross domestic product adjusted for price, seasonal and calendar effects increased according to the refined estimate by 0.6%, year-on-year (y-o-y); compared to Q3 2011 it decreased by 0.1%. In 2011, GDP increased by 1.7%.

In Q4 2011, according to the refined estimate, gross domestic product (GDP) adjusted for price effects and seasonally adjusted */ increased by 0.6%, y-o-y (the preliminary estimate of 15 February indicated growth by 0.5%). The GDP grew in Q4 2011 thanks to the development of taxes on products, especially the excise tax on tobacco products owing to stocking up in relation to change of rates from 1 January 2012. The gross value added broken down by branches (GVA) stagnated in total, y-o-y, as the significant growth of manufacturing by 8.1% just eliminated falls of most of the other branches. A marked y-o-y increment was recorded by agriculture, which benefited from favourable climatic conditions; however, its weight and thus also the contribution to the overall GVA were insignificant. A considerable decrease occurred again in construction, which had to cope mainly with lack of orders. On the demand side of the economy it was only external trade, which was instrumental in the GDP growth as it generated historically highest positive balance. Other important expenditure components have not reached the level of the last quarter of 2010. Final consumption expenditure of households was lower by 0.7%, expenditure of general government by 1.7%, and fixed capital formation by 1.7%. The overall price level measured by GDP implicit deflator increased by 0.9%, y-o-y.

Compared to Q3 2011, the GDP dropped by 0.1% (the preliminary estimate was -0.3%). Nevertheless, it has to be noted that the GDP was not even lower only thanks to an considerable q-o-q increase of taxes on products by 5.4%. The total GVA (characterizing economic performance of individual branches) after nine quarters of continual growth totalling 6.0% decreased in Q4 2011 by marked 0.8%. Manufacturing, as the main driving force of the economy, has only stagnated in comparison to Q3 2011 and thus it was not able to cover losses of the other branches, which are significant for their volume. On the demand side, external trade was able by the increase of its surplus to compensate q-o-q decreases of expenditure of general government and capital formation. Final consumption expenditure of households remained on the level of Q3 2011.

In 2011, GDP increased at constant prices by 1.7% compared to 2010; however, q-o-q increments were recorded only in the first half-year; in the second half-year the economy virtually only stagnated (small q-o-q decreases in the Q3 and Q4 by 0.1% each are within possible statistical error). The GVA for the entire year increased by 1.5%; its driving force was especially manufacturing. Although it was also gradually losing its pace, it was able, due to its 9.8% y-o-y increase, to eliminate the most significant falls of the GVA in the following branches: construction by 7.1%, information and communication by 4.8%, and professional, scientific, technical and administrative activities by 2.3%. From components of the demand that are significant for their volume, decreasing was final consumption expenditure of households by 0.5%, general government by 1.4%, and fixed capital formation by 1.2%. Compared to the previous year, also the increment of inventories was lower. Therefore, the economic growth was ensured by external trade, in which exports increased by 11.0%, while imports only by 7.5%.

The overall price level measured by the GDP implicit deflator decreased in average by 0.7%, y-o-y, in 2011. Partial deflators of individual components of the demand increased, on the contrary: as for final consumption expenditure of households by 1.9%, y-o-y, exports by 0.3%, and imports by 2.7%. The total decrease of the overall price level resulted from a marked worsening of terms of trade in external trade due to the price development of commodities, which outweighed the growth of domestic, mainly retail prices.

Total employment in terms of national accounts (seasonally adjusted) was in 2011 higher in total by 0.3% than in 2010. In the average, the number of employed persons was 5 067 thousand.
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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 (+420) 274 0 52 865, e-mail: jan.heller@czso.cz
Used data sources updated as at: 6 March 2012
Related CZSO web page: /csu/czso/hdp_ts
Next News Release will be published on: 15 May 2012 (GDP preliminary estimate for the first quarter of 2012)



  • ahdp030912.doc

  • Annexes:
  • Table 1 Gross domestic product (in CZK million, indices)
  • Graph 1 GDP and GVA Development at Constant prices, y-o-y indices, seasonally adjusted
  • Graph 2 GDP and GVA Development at Constant prices, q-o-q indices, seasonally adjusted
  • Graph 3 Gross Domestic Product
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Published: 09.03.2012
The data are valid as of the release date of the publication.


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