Preliminary GDP data showed that the Czech economy in the second quarter increased by 0.7 percent. Analytics estimated growth by 0.4 percent. While the previous quarter brought the hopeful signs in the GDP while the overall decline was significant (-1.1 percent), now even key figures improved. The recession, which lasted six previous quarter, is thus over. Year to year basis Czech economy continues to decline. GDP fell by 1.2 percent after a decline of 2.4 percent in the first quarter y/y. Consensus for the annual change was -1.6 percent.
The decisive contribution to growth came from the foreign trade. Exports increased by 1.4 percent and imports by 0.3 percent. CSO indicates that household consumption declined further, in 1Q while its decline significantly diminished. The continued decline is also seen with investment in fixed capital. Government spending remained unchanged, after the first quarter when it went up by more than 1% year on year.