The Czech economy experienced moderate growth in the third quarter of 2024. Gross domestic product (GDP) rose by 0.4% compared to the previous quarter and by 1.3% year-on-year. The main drivers were rising consumer spending, while investments and foreign demand had a negative impact.
The revised estimate confirmed the growth of the Czech economy. Adjusted for price and seasonal effects, GDP increased by 0.4% compared to the previous quarter and by 1.3% year-on-year.
Gross value added (GVA) rose by 0.8% in the third quarter compared to the previous quarter and by 1.0% year-on-year. Industry made the largest contribution to quarterly growth (+1.5%), while trade, transport, catering, and food (+0.7%), information and communication (+1.5%), and financial and insurance activities (+2.8%) also performed well.
Year-on-year GVA growth (+1.0%) was primarily driven by the trade, transport, catering, and food sector, contributing +0.5 percentage points, or 2.6% growth. Other services also made positive contributions. However, industry and construction both recorded a slight decline of 0.1%.
“On the demand side, rising consumer spending by private households and changes in inventories were the main drivers of GDP growth in the third quarter compared to the previous quarter. Gross fixed capital formation and foreign demand had a negative impact,” commented Vladimír Kermiet, Director of the National Accounts Department at the Czech Statistical Office.
Annual GDP growth (+1.3%) was positively influenced by consumer spending by private households (+1.4 percentage points), government spending (+0.6 percentage points), and foreign demand (+0.2 percentage points).
Consumer spending rose by 0.5% compared to the previous quarter and by 2.5% year-on-year. Private household consumption increased by 0.7% quarter-on-quarter and by 2.2% year-on-year. In contrast, government consumption fell by 0.1% compared to the previous quarter and by 3.0% year-on-year.
The foreign trade balance in goods and services totaled CZK 121.8 billion at current prices, CZK 29.9 billion higher than in the same period of the previous year. Exports rose by 1.9% in real terms quarter-on-quarter and by 4.0% year-on-year, driven particularly by growth in the exports of electrical and optical equipment and motor vehicles. Imports increased by 3.2% quarter-on-quarter and by 3.4% year-on-year.
Total employment remained unchanged compared to the previous quarter but rose by 0.4% year-on-year. The total number of hours worked increased by 1.5% quarter-on-quarter and by 1.4% year-on-year.
