The Czech Statistics Office (CSO) confirmed its earlier preliminary estimates of Czech economic growth at 2.5% year-on-year and 0.4% quarter-on-quarter in 3Q19, the agency said in a report entitled “Development of Czech economy 1Q19 - 3Q19” published on December 16.

Year-on-year growth in the Czech Republic remained above the EU28 average of 1.4%.

Annual growth in final consumption expenditure slowed to 2.3% and its consumption stagnated q/q. “In particular, household consumption slowed since the end of 2018, concerns have been growing about the deterioration of the overall economic situation and, in the 3Q19, also an increase in unemployment,” said CSO Head of Analyses Department Karolina Zabojnikova.

Investment activity saw a decline, whereas investment in building constructions has increased by/y.

Gross value added grew by 2.4% y/y and by 0.3% q/q in 3Q19. The structure of y/y dynamics has not changed significantly.

Also construction did well, up by 4.1% y/y in 3Q19, thus continuing the last year's recovery.

Favourable external trade balance developments also contributed positively to a y/y GDP growth. Exports of goods and services grew by 1.8%. Surplus of trade in goods in 9M19 stood at CZK136.5bn (€5.4bn), up by CZK49.9bn (€1.96bn) y/y, mostly due to a solid increase in the value of exports (3.9%, €4.14bn) and weakening import dynamics (2.2%, €2.2bn). In 3Q19, these differences in dynamics deepened further.

The surplus increased due to a higher trade surplus mainly in motor vehicles and also thanks to an improvement in the balance of trade in oil and natural gas.

The rate of annual average wage growth slowed down slightly to 6.9% in 3Q19. The general unemployment rate stagnated and economic slow-down was mainly indicated by a 0.2% q/q decline in total employment, mainly due to the deteriorating in industrial situation.