GDP Resources and Uses - 3rd quarter of 2020

Czech economy decreased by 5.0%, y-o-y

01.12.2020
Code: 050056-20
 

According to the refined estimate, the gross domestic product decreased by 5.0%, y-o-y, in the Q3 2020; in the q-o-q comparison it increased by 6.9%. The negative y-o-y GDP development was caused by a decrease in the domestic demand.

The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1]  decreased by 5.0% compared to the corresponding quarter of the previous year. In the quarter-on-quarter comparison (q-o-q), the GDP increased by 6.9%.

The gross value added (GVA) was by 4.8% lower, year-on-year (y-o-y). The GVA formation decrease was influenced the most by the development in manufacturing (negative contribution
-1.2 p. p., drop by 4.9%), in a group of economic activities of trade, transportation, accommodation and food service activities (-1.7 p. p., drop by 9.3%), and in professional, scientific, technical and administrative activities (-1.1 p. p., drop by 14.1%). A positive contribution came from agriculture (0.1 p. p. with an increase by 3.7%) and a group of economic activities of public administration, education, and human health and social work activities (0.2 p. p. with an increase by 1.4%). In the quarter-on-quarter comparison, the GVA increased by 7.3%. The GVA grew thanks to a low comparison basis in most of economic activities of the economy; in manufacturing it was by 16.5%, in a group of economic activities of trade, transportation, accommodation and food service activities by 13.5%, and in other service activities by 21.3%.

On the demand side, the y-o-y decrease of GDP in the Q3 was influenced by the lower domestic demand. The y-o-y drop of GDP by 5.0% was negatively contributed to by household consumption (-1.3 p. p.[2]), investment expenditure (-2.6 p. p.), and changes in inventories (-1.5 p. p.). A positive contribution came from the external demand (0.4 p. p.).

Final consumption expenditure decreased by 2.7%, y-o-y; in the q-o-q comparison it increased by 3.2%. Of that, consumption expenditure of households decreased by 3.9% in real terms compared to the corresponding quarter of the previous year; in comparison to the Q2 2020 it increased by 5.0%. Especially consumption of semi-durable goods and expenditure on services decreased, y-o-y. Final consumption expenditure of general government increased by 0.1%, y-o-y, and decreased by 0.6%, q-o-q.

Gross fixed capital formation decreased by 10.7%, y-o-y. In the q-o-q comparison it decreased by 5.0%. As for the type of assets, investments in dwellings, transport equipment, and intellectual property products weakened the most.

The international trade balance at current prices increased by CZK 36.7 bn, y-o-y, in the Q3 2020 to record high CZK 126.6 bn, of which the balance of international trade in goods was CZK 96.2 bn. Exports of goods increased by 0.2%, y-o-y; in the q-o-q comparison, it increased by 31.4%. The year-on-year development of exports of goods was positively influenced mainly by trade in electronic and optical products and food products, while a negative influence came from trade in machinery and equipment and fabricated metal products. Imports of goods dropped by 1.3%, y-o-y; in the q-o-q comparison it increased by 20.6%. The following contributed significantly to the y-o-y development of imports: decrease in import of crude oil and natural gas, basic metals, machinery and equipment, and sub‑deliveries for the automotive industry. Exports of services decreased by 20.2%, y-o-y (in the q-o-q comparison it increased by 0.6%) and imports of services decreased by 26.3% (in the q-o-q comparison it decreased by 8.2%).

As for the price development in the Q3 2020, the total GDP deflator reached 4.1%, y-o-y.

The volume of labour costs[3] increased by 0.1%, y-o-y, in the Q3 2020.

In the Czech Republic, in the Q3 2020, 5 332 thousand persons were employed[4] in average. The total employment decreased by 1.7%, y-o-y; in the q-o-q comparison it increased by 0.2%. The number of hours worked was by 0.3% higher, y-o-y, and in the q-o-q comparison it increased by 12.5%.

 

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: 25 November 2020
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: 2 February 2021
(GDP preliminary estimate for the fourth quarter of 2020)


[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.

 

  •      ahdp120120.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: 01.12.2020
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