Czech Q3 economy to post 4.0% yoy growth

Czech Republic's yearly and quarterly GDP for Q3 is likely to release this week. The economy recorded 1.1% qoq and 4.6% yoy growth in previous quarter, is expected to print slightly slower growth rate in this quarter. 

"GDP of the economy is likely to contract 0.1% qoq in the third quarter, translating into a slowdown of the yoy dynamics from 4.6% yoy in the second quarter to 4.0% in the third quarter. The GVA measure, which is not affected by changes in taxation, should increase by 0.7% qoq and 3.8% yoy in Q3", says Societe Generale.

The mechanisms of tobacco taxation caused to an overestimation of GDP in the first half of 2015. Similarly, it caused underestimation of GDP in next half of 2015.