The growth in the Czech Republic was faster in the last quarter of 2017 than was previously estimated by statisticians. Gross domestic product rose by 0.8 percent against the previous three months. For the whole of last year, the economy grew by 4.6 percent. The Czech Statistical Office (CSO) has published today more detailed information.
Earlier in March, the statistics estimated growth of 5.2 percent in the last quarter, and the Czech economy is estimated to grow by 4.6 percent for entire 2017.
Analyst Pavel Sobisek, UniCredit Bank told CTK news that according to new data, there are somewhat contradictory signals for the economy this year. The contradiction is visible as in one hand it is predicting growth from the last quarter of previous year, whose results will be visible in the current quarter and on the other hand, it is putting more and more obvious signs of a cyclical slowdown in the business sphere into a more difficult situation. The profitability of enterprises is likely to not be repeated last year, he added.
The Czech economy strengthened last year for the fourth consecutive year. In 2016, Czech GDP grew by 2.5 percent, a year earlier by 5.4 percent and by 2.7 percent in 2014.
According to recent data from the Czech Statistical Office, real household incomes grew year-on-year by 3.9 percent. Household consumption per capita also rose by 4.6 percent. In absolute figures, the monthly household income per capita averaged CZK 24,842, while the monthly consumption per capita was CZK 22,925 last year.
By contrast, the annual rate of profitability of non-financial corporations declined by 1.1 percentage points to 49.4 percent year on year.
According to the Czech Statistical Office, "Even so, the profit rate in the Czech Republic remained high above the European Union average, where it reached about 40 percent,"
The reason for the lower profitability of non-financial corporations was a faster growth in wage costs, which grew by 8.4 percent year on year last year, according to the statistics. Business investment rose by 0.2 percentage point to 29.4 percent from 2016.