GDP Resources and Uses - 4th quarter of 2019

Gross domestic product 2.4% up in 2019

03.03.2020
Code: 050056-19
 

According to the refined estimate, the gross domestic product was by 0.3% higher in the Q4 2019 compared to the previous quarter; in the year-on-year comparison it increased by 1.8%. The GDP growth for the entire year 2019 was 2.4%.

The Czech economy continued to grow thanks to the domestic demand also in the end of 2019. The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1] in the Q4 was by 0.3% higher compared to the previous quarter. Compared to the corresponding quarter of 2018, the GDP increased by 1.8%. The dynamics of the economy growth was thus gradually decreasing during the year 2019.

GDP development (%)

 

Q1

Q2

Q3

Q4

Year 2019

Compared to the previous quarter

0.6

0.5

0.4

0.3

2.4

Compared to the corresponding quarter of 2018

2.7

2.6

2.4

1.8

GVA development (%)

 

Q1

Q2

Q3

Q4

Year 2019

Compared to the previous quarter

0.6

0.5

0.3

0.4

2.4

Compared to the corresponding quarter of 2018

2.8

2.6

2.3

1.8

The gross value added (GVA) increased in the Q4 2019 by 0.4%, quarter-on-quarter (q-o-q), and by 1.8%, year-on-year (y-o-y). In the q-o-q comparison, mainly the following economic activities were successful: professional and administrative activities, information and communication, and real estate activities. Construction stagnated in comparison to the previous quarter; in the y-o-y comparison it grew by 3.1%. The GVA decreased in manufacturing (−1.0%, q-o-q; −0.3%, y-o-y). Especially the following economic activities were unsuccessful: manufacture of machinery and equipment and transport equipment. A positive contribution came from manufacture of metals, manufacture of fabricated metal products, and manufacture of basic pharmaceutical products and pharmaceutical preparations. 

On the demand side, growing consumption expenditure of households and expenditure on the gross fixed capital formation were key factors of the economy growth in the Q4 2019. The y-o-y growth of GDP (1.8%) was contributed to by final consumption expenditure of households (1.3 percentage point (p. p.)[2]), investment expenditure (0.7 p. p), and the general government expenditure (0.4 p. p.). On the contrary, external demand (−1.9 p. p.) had a markedly negative influence.

Consumption expenditure of households on goods and services increased by 1.0%, q-o-q (in the y-o-y comparison it was 3.2% up), mainly owing to increasing expenditure on purchase of services.

Fixed capital formation in the Q4 was by 3.6% higher both in the q-o-q and in the y-o-y comparison. Investment expenditure of enterprises went mainly to construction investment and machinery equipment. Investments in dwellings and intellectual property products were increasing with a high growth rate. On the contrary, investments in transport equipment decreased.

The y-o-y growth rate of capital was positively influenced also by the development of inventories3, which decreased in the end of the year by CZK 11.0 bn, while in the corresponding quarter of the previous year it was by CZK 24.0 bn.

The balance of international trade in goods and services at current prices reached the value of CZK 71.0 bn; thus it was by CZK 22.6 bn lower than in the corresponding period of the previous year. Exports decreased in real terms by 1.5%, q-o-q, and by 1.6%, y-o-y. The development was influenced the most by a decrease in exports of electronic and optical products and machinery and equipment. On the contrary, imports increased by 1.2%, q-o-q (1.4%, y-o-y), namely thanks to increased purchases of services.

As for the price development in the Q4 2019, the total GDP deflator increased by 0.8%, q-o-q, and by 3.5%, y-o-y.

The volume of labour costs[3] increased by 6.2%, y-o-y, in the Q4 2019.

Total employment[4] decreased by 0.3% compared to the previous quarter and in the y-o-y comparison it remained unchanged. The highest growth of employment was in the economic activity of information and communication. A decrease of employment occurred in industry.

 

GDP resources and uses in 2019

The GDP for 2019 was by 2.4% higher than in 2018. Consumption expenditure was the key factor of the year-long growth. Household consumption contribution was 1.2 p. p. and the contribution of the general government expenditure was 0.6 p. p.

The GVA in 2019 increased by 2.4% compared to the previous year. The economic growth has occurred across all economic activities of the Czech economy. The GVA growth was the most contributed to by a group of economic activities of trade, transportation, accommodation and food service activities, and information and communication. Also administrative and professional activities were successful as well as construction.

Final consumption expenditure of households increased by 3.0%. The international trade balance increased at current prices by CZK 3.7 bn, y‑o‑y, to CZK 345.7 bn. Gross fixed capital formation for the entire year 2019 was by 2.3% higher than in 2018. Increased investments went especially to dwellings, other buildings and structures, and intellectual property.

Total employment increased by 0.7%, y-o-y, to 5 455 thousand persons. In total, there were by 0.7% more hours worked than in 2018.

 

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: 26 February 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: 15 May 2020 (GDP preliminary estimate for the first 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), unless otherwise stated.

[3] At current prices, not seasonally adjusted.

[4] In terms of national accounts.

 

  •      ahdp030320.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: 03.03.2020
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