6th June 2014

Competitiveness: End of crisis. The Czech Republic grew faster than estimated

According to the refined estimate of the Czech Statistical Office for the first quarter of 2014 the Czech Republic did not stagnate. It grew and in comparison to the previous period it strengthened by 0.4 % and year-on-year its GDP grew by 2.5 %. Jiří Moser, PwC Czech Republic Executive Partner, said that Czech economy was heading upwards after its slim years and that the good numbers came from both industry and households. Analyst Michal Kolozub added that the economy didn’t include any major brake that could push it back into the crisis. The biggest share on restoring the industry had manufacturing industry that grew by 4.6 % year on-year. Although companies are still careful in their investments they are preparing significant expansion according to the PwC survey. Positive fact is accrding to Patrik Rožumberský, UniCredit Bank analyst, that Czech economy grew in all sectors of demand (domestic, investments, governmental and net export). Czech GDP is now only 0.3 % lower than in 3Q of 2011 before it repeatedly slipped back into the recession. According to the analyst the Czech economy overcame growth of Slovak economy and year-on-year the growth is comparable to the German one with 2.5 % although German economy grew faster in respect to the previous quarter by 0.8 %. Poland with its year-on-year growth of 3.4 % and best from the Visegread group fared Hungary with 3.5 %. Positive trend of Czech economic growth is confirmed also by more recent data with year-on-year industrial growth in April when industry grew by 7.7%, revenues were raised by 10.3 % and amount of new contract increased by 14.7 %.

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Members of the American Chamber of Commerce in the Czech Republic