GDP Keeps Rising In The Czech Republic In First Quarter of 2022
According to the adjusted estimates, Czech GDP (gross domestic product) increased by 0.9% in Q1 2022, with a year-on-year increase of 4.8%, according to figures from the Czech Statistical Office (CZSO). The year-on-year GDP growth was mainly driven by household consumption and gross capital formation, while external demand had a negative influence. Photo credit: Freepik
Czech Republic, 2 June (BD) – Gross value added (GVA) increased by 0.8% from the previous quarter, and by 4.4% compared to the same period of last year. The largest contributors to the increase from Q4 2021 were manufacturing (+3.2%) and construction (+6.4%). The trade, transport and accommodation and food services sector (+0.6%) also played a role. On the other hand, there was a decline in financial and insurance activities (-3.2%) and in the area of public administration, education and health and social work (-2.5%).
The GVA growth of 4.4% year-on-year was mainly driven by trade, transport and accommodation and food services, which grew 14.1%, construction (+9.6%), and real estate (+3.6%). The manufacturing sector had a negative impact, with a loss of -0.7%.
“The different structure of the contributions to GDP growth in year-on-year and quarter-on-quarter comparisons is due to several important factors,” said Vladimír Kermiet, Director of the National Accounts Department of CZSO. “The comparison basis of the previous year was still largely influenced by the anti-epidemic measures and the lack of components, especially for industry. This year, household spending has already started to reflect the increase in price levels and the reduction in spending, especially on durable goods.”
In a year-on-year comparison, household consumption expenditure increased by 8.5%. General government consumption expenditure decreased by 0.2% in quarterly terms and increased by 2.0% in annual terms. Gross fixed capital formation increased by 4.5% q-o-q, and by 7.4% y-o-y.
The balance of international trade in goods and services at current prices totalled CZK 10.7 billion, as exports increased in real terms by 3.0% q-o-q; in the year-on-year comparison, they decreased by 0.1%. The export trend was mainly impacted by a decrease in exports of motor vehicles. In contrast, imports increased by 2.3% q-o-q; in the year-on-year comparison, they rose by 3.7%, mainly due to an increase in imports of metal products and electrical equipment. In contrast, imports of vehicles and sub-supplies for the automotive industry decreased.
Regarding the price development in Q1 2022, the total GDP deflator, the tool used to depreciate GDP growth from price rises, increased by 5.8% year-on-year, the highest since 2002.
Total employment increased by 0.4% q-o-q, and by 1.5% y-o-y. In total, hours worked increased by 0.8% from the previous quarter, and by 6.4% compared to Q1 2021.