The Czech economy recorded moderate growth in the second quarter of 2024. According to a revised estimate by the Czech Statistical Office (ČSÚ), gross domestic product (GDP) increased by 0.3% compared to the previous quarter and by 0.6% compared to the previous year. This growth was mainly driven by higher consumer spending.
Gross value added (GVA) rose by 0.5% quarter-on-quarter, but only by 0.1% year-on-year. The trade, transport, catering, and food sectors made particularly positive contributions, while the manufacturing industry negatively impacted growth.
“In the second quarter, Czech economic output grew primarily due to rising consumer spending and gross fixed capital formation, while the change in inventories slowed growth,” explained Vladimír Kermiet, Director of the National Accounts Department at the Statistical Office.
Consumer spending increased by 0.6% compared to the previous quarter and by 2.0% compared to the previous year, with notable growth in spending on consumer goods and services. Gross fixed capital formation also grew by 1.9% quarter-on-quarter and 0.7% year-on-year, driven by investments in residential property, transport, and intellectual property.
Foreign trade also provided positive impetus: the balance of foreign trade in goods and services reached CZK 143.0 billion, an increase of CZK 45.4 billion compared to the previous year. Exports rose slightly, while imports fell year-on-year.
Employment also showed positive development, with a 0.5% increase compared to the previous quarter. The volume of labor costs rose by 5.5% year-on-year, although the number of hours worked was 1.0% lower than in the previous year.
Overall, the revised estimate confirms the stability of the Czech economy, although growth remains moderate.
