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Czech Statistical Office: Czech economy grows by 1.2 pct in Q3 yr/yr /12. 12. 2011/
Prague - Czech economy expanded by 1.2 percent in Q3 year-on-year, a drop of 0.3 percentage point compared to the preliminary estimate, and gross domestic product (GDP) fell by 0.1 percent against Q2, while the preliminary estimate predicted stagnation, the Czech Statistical Office (CSU) said today.
The main source of demand growth is only external trade, with the growth rate of export markedly higher than that of import.Gradual quarter-on-quarter slowdown, which started in Q3 2010, now resulted in a halt of economic growth. Decrease of demand for final consumption and capital formation was fully compensated by growing contribution of external trade, where export grew markedly faster than import of goods and services, the CSU said.
On the supply side of the economy, manufacturing industry played a major role in an annual increase of gross value added (GVA). The statisticians said that the GVA volume generated by manufacturing in Q3 this year was almost 11 percent higher than a year earlier. The industry benefited from increases reached in the preceding quarters, however. It failed to achieve the level of Q2 2011.
Trade remained below the level of the third quarter 2010 as well as the second quarter 2011. The group of branches of mainly non-market services, on the contrary, recorded a slight annual and quarter-on-quarter growth. As for other branches, financial and insurance activities recorded the biggest growth in GVA compared to Q3 last year and Q2 this year. Agriculture and forestry also saw a big increase in quarter-on-quarter terms. A further drop, on the other hand, was seen for construction, the CSU said. GVA in total increased by 1.1 percent on the year, while it stagnated compared to the second quarter this year.
Source: Financninoviny.cz, 09.12.2011. Full article can be found here.
