In the first quarter, the economy grew by 4.8 percent year on year

According to revised estimates, the Czech economy grew by 4.8 percent year on year in the first quarter of this year. This was announced by the Czech Statistical Office (ČSO).

Gross domestic product (GDP) increased by 0.9 percent quarter on quarter. In contrast, the economy’s performance declined year-on-year in the first quarter of last year, adversely affecting the COVID-19 pandemic.

The refined estimate points to more robust growth in the Czech economy than statisticians had initially anticipated.

In its preliminary estimate, the ČSO said the economy had expanded by 4.6 percent year-on-year and 0.7 percent quarter-on-quarter in the first quarter.

According to the statisticians, the strengthening of the economy’s performance compared to last year was mainly due to household final consumption expenditure and gross capital formation. In contrast, foreign demand harmed GDP.

Final consumption expenditure rose by 6.2 percent year on year. Of this, household consumption expenditure rose by 8.5 percent.

Government final consumption expenditure increased by 2 percent. However, household spending fell by one percent quarter-on-quarter. The decline was mainly in purchases of durable goods.

“Last year’s comparative base was still largely affected by anti-epidemic measures and a shortage of components, especially for industry,” said Vladimir Kermiet, director of the ČSO’s National Accounts Department.

“This year, the rising price level and the reduction of households’ spending, especially on durable goods, are already reflected in their expenditure,” he added.

Gross fixed capital formation increased both year-on-year and quarter-on-quarter. It was up 4.5 percent from the previous quarter and 7.4 percent yearly.

According to the ČSO, investment in housing and other buildings and transport equipment, in particular, grew.

Gross value-added, the difference between the value of products and services and the cost of producing them, also rose in this year’s first quarter. It increased by 0.8 percent quarter-on-quarter and by 4.4 percent year on year.

According to the statisticians, the sectors contributing most to the year-on-year growth were trade, transport, accommodation and food services, construction, real estate, public administration activities, education, and health and social work.