Czech Republic posted 2.5% qoq growth in Q1 15

Gross value added (GVA)a better tool for measuring the performance of the Czech economy, rose 1.3% in qoq terms (3.5% in yoy terms). The good news is that GVA rose across all economic sectors, not only in the vast majority of industrial sectors rise but in construction and services as well, says Societe Generale. 

The current recovery thus has a solid base and is supported by the revival of main export markets, lower oil prices compared with the end of last year, and domestic fiscal and monetary policies.

The quarterly sector accounts reveal that corporate profitability increased in Q1 15 (to 49.7%) with this now closer to the level before the crisis, notes Societe Generale. The investment rate also increased. Real household income increased too, while the savings rate fell, which shows the willingness of households to spend. The Czech economy finally posted growth of 2.5% qoq in Q1 15.