Czech Economy Cools In Q3

The Czech economy growth slowed to 2.5 percent in Q3 compared to the previous quarter, gross domestic product (GDP) increased by 0.3 percent, the lowest since the Q1 of 2016. According to data from the Czech Statistical Office (CSO).

 

In the second quarter, the Czech economy showed year-on-year growth of 2.8 percent and a quarter-on-quarter increase of 0.7 percent. Analysts expected a slight slowdown in Q3, but the Czech economy is growing faster than the German one, they said.

 

A slightly weaker result than expected by the financial market and the Czech National Bank. GDP growth is at a good pace, despite the overall weak growth of the euro area economy. It expects economic growth to slow down to 2.5 percent this year, and by 2020 to further decline to two percent.

 

GDP growth lags behind the CNB’s forecast. Economists expect weak results in the last quarter of 2019 when growth will likely reach two percent.

 

Euro-area economic growth in the third quarter reached 0.2 percent quarter-on-quarter and 0.3 percent across the EU, with economic growth in both the euro area and the EU as a whole 0.2 percent in the second quarter. In a year-on-year comparison, the Euro-area GDP increased by 1.2 percent, the same as in the second quarter. Annual growth slowed to 1.3 percent from 1.4 percent across the EU.