GDP in the 1Q07 increased by 6.1% y/y. As expected, household consumption dragged Czech economy in the first quarter up. Surprisingly low levels were reached by investments while foreign trade contribution was negative. According to revised data, Czech economy in the 1Q07 rose with the same pace as at the end of last year. In the previous three years, GDP moved up after revision which means that we have definitely moved closer to average GDP per capita in the EU. On the other hand, impact on monetary policy is doubtful. It is necessary to analyze what is the value of potential product, output gaps and implied inflation risks. For the full year 2007 we expect GDP increase by 5.5%.