Czech economic growth accelerates to 0.9 pct in sequential terms in Q2

The Czech economic growth has accelerated in the second quarter of 2016. The nation’s real GDP expanded 0.9 percent on sequential basis and 2.5 percent on year-on-year basis, according to the preliminary estimate released by the Czech Statistical Office. The growth of the Czech economy still belonged to the highest in the European Union in the second quarter of 2016.

Most industries of manufacturing and services have been a key driver for the favorable economic growth the country has recorded. On the expenditure side, steady rise in consumption of households and external demand mainly contributed to the Czech economic growth in the second quarter.

Moreover, in the second quarter, the economic growth had a positive influence on the labor market: by the labor market, stated Czech Statistical Office.  Employment in the country rose 0.3 percent quarter-on-quarter and 1.6 percent year-on-year in the second quarter.

Meanwhile, the Czech Republic has released its producer price index data that indicates that the industrial producer prices remained unchanged on month-on-month terms in July. Construction work prices rose 0.1 percent on sequential basis. Agricultural producer prices dropped 1.2 percent, while market services prices fell 1.1 percent on sequential basis.

On a year-on-year basis, agricultural producer prices dropped 6.8 percent, while industrial producer prices declined 4 percent. On the contrary, prices of construction work rose 1.1 percent, while that of market services increased 0.2 percent, added Czech Statistical Office.