28th August 2015

Economic Policy: On Czech GDP growth. Analyses, trends (updated)


CTK: The Czech Statistical Office (CSU) confirmed the strong 4.4 percent annual growth of the economy in Q2 in its revised estimate made public on 28 August, and improved the preliminary estimate of a quarter-on-quarter rise from 0.9 to 1 percent...Manufacturing increased by 7.0 percent on the year and construction was 3.1 percent higher. All of the economic activities in services grew markedly as well. Trade, transport and accommodation increased by 2.8 percent, information and communication activities by 4.4 percent and professional, scientific, technical and administrative activities by 5.9 percent on an annual basis, statisticians said.
The economic growth was evenly distributed among all economic activities of the domestic economy, the CSU said...Read more here and here (in English).

Statement of the Czech Prime Minister Bohuslav Sobotka is available here.

Still, it has been pointed out that steps of the current government such as the proposed system of electronic registration of payments, recent hasty adoption of minimum wage rise (effective in 2016) and excessive budget deficit could undermine the current GDP growth (read Roklen24 commentary here). Also, the potential of further growth is low due to slow wage growth and fading effect of EU funding. More details on that here (Zet.cz) and here (Radio Prague, in English).

Click also on the interview on DVTV with US-based, Czech-born professor Jan Švejnar, Director of the Center on Global Economic Governance and Professor of International and Public Affairs at Columbia University, supporting the principle of online registration of payments, explaining impacts of Chinese economic developments on the Czech Republic and advising the Czech Government prepare itself in advance for the next crisis.

An interview with the Prague's Charles University economist Michal Mejstřík available here (in English).

Nevertheless, the Czech Republic is currently the fastest growing economy in the European Union year-on-year in Q2 and third fastest growing economy among the OECD member states (after China and Indonesia). Read more here.

Also, July 2015 data by Eurostat indicate that Czech government debt fell by 2.2 percentage points between Q1 2014 and Q12015. Read more.

Members of the American Chamber of Commerce in the Czech Republic