Actual figure: -3.4% q/q and -3.4% y/y
Previous flash estimate: -3.4% y/y
Detailed GDP figures confirmed that the Czech economy sunk deeper into the recession as GDP declined by 3.4% q/q as it was printed in the flash estimate. Exports and gross fixed capital formation are the main reason behind falling GDP. On the other hand, household consumption expenditures kept growing as well as government expenditures.
Latest industrial production and foreign trade figures suggest the fall in GDP can moderate in 2Q. Our full year GDP forecast points to the decline by 5.0% this year and a growth by 0.8% in 2010.