Czech GDP in 2015 likely to be supported by stronger external demand: Danske Bank

Quotes from Danske Bank:

-Czech preliminary Q4 2014 GDP showed 1.3% y/y growth, which was much weaker than expected (consensus 1.9% y/y) and lower versus 2.4% y/y in Q3 14. We forecast GDP at 2.5 % y/y for 2015 and 3.1% y/y in 2016.

-We expect GDP in 2015 to be supported by stronger external demand, low oil prices and expansionary fiscal policy. At the beginning of February, the CNB revised its GDP forecast upwards slightly, due mainly to lower oil prices. It now expects GDP growth of 2.6% in 2015 and 3.0% in 2016.