GDP resources and uses - 1. quarter of 2016

Household expenditure significantly contributed to GDP growth

03.06.2016
Code: 050056-16
 

According to a refined estimate, the gross domestic product in the first quarter was higher by 3.0%, year-on-year (y-o-y); compared to the previous quarter (q-o-q) it increased by 0.4%.

The refined estimate confirmed that performance of the Czech economy was increasing in the beginning of 2016 both in the y-o-y and q-o-q comparison. The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1] increased by 0.4%, q-o-q. In the year-on-year comparison, the GDP increased by 3.0% at constant prices.

The gross value added (GVA) increased by 0.5%, q-o-q, and by 3.0%, y-o-y. The favourable development of the economy continued in most of the economic activities of the Czech economy, especially in manufacturing. It increased by 6.4%, y-o-y; compared to Q4 2015 it grew by 1.8%. In the year-on-year comparison, the GVA grew also in most of the economic activities in services. For example, in trade, transport, and accommodation it increased by 3.8%, y-o-y, in real estate activities by 3.0%, and in professional, scientific and technical activities by 2.6%. Construction grew by 0.4%, y-o-y; however, compared to the previous quarter, its performance was by 4.1% lower (due to a high comparison base in the end of 2015).

On the demand side, the GDP growth was driven evenly by both the domestic and foreign demand. Continuing stable growth of household consumption was (at slowdown of investment activities) a factor that determined the growth of domestic demand. The y-o-y GDP growth (3.0%) was contributed to by final consumption expenditure (by 1.6 p.p.) and external trade (by 1.4 p.p.). [2]  

Final consumption expenditure of households increased by 3.1%, y-o-y; in the q-o-q comparison it was 0.9% up. Similarly as in the previous year, expenditure grew in all basic categories of household expenditure, especially in durable goods. Final consumption expenditure of general government increased by 2.9%, y-o-y; in the q-o-q comparison it was by 0.2%.

Investment activity was to a large extent influenced by a decline of investments in buildings and structures or rather by a high comparison base in 2015. Fixed capital formation was 0.6% up, y-o-y, while in the q-o-q comparison it decreased by 5.6%. The y-o-y growth of fixed capital was contributed to mainly by investments to transport equipment and housing.

External trade balance at current prices was in the Q1 significantly higher, y-o-y (CZK +89.1 bn) than in the previous year (CZK +74.4 bn). The growth was contributed to by both trade in goods as well as in services. Exports, which increased by 6.0%, y-o-y, at constant prices, was driven especially by trade in transport equipment and electrical equipment. Growth of imports by 5.6% was pulled markedly by sub-deliveries for the automotive industry and manufacture of electrical equipment. A faster decrease of import prices compared to export prices significantly increased the overall GDP deflator.

The labour market, owing to the continuing economic growth, continued to develop in a positive way, too. In the Q1 2016, total employment in terms of national accounts increased by 1.9%, y-o-y, and by 1.5%, q-o-q.

 

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: Tereza Košťáková, phone number (+420) 274 052 750, e-mail: tereza.kostakova@czso.cz
Used data sources updated as at: 24 May 2016
Time series: https://www.czso.cz/csu/czso/hdp_ts
Related CZSO 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: 16 August 2016
(GDP preliminary estimate for the second quarter of 2016)


[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 are calculated with exclusion of imports for final use.

 

  •      ahdp060316.docx

  • 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
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Published: 03.06.2016
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