01/10/2023 at 10:00 AM
According to the first estimate in August, the decline in the second quarter was 0.4 percent, and in a quarterly comparison, GDP increased by 0.1 percent.
“It is clear from the clear data that the Czech economy is still unable to return to the level it was before the coronavirus pandemic,” Peter Duvek, chief economist at Creditas Bank, commented on the data.
“Everything begins and ends with inflation, which leads to the liquidation of purchasing power and weakens the desire to invest,” Dufek noted.
Analysts expect that the situation will improve in the second half of the year and that the Czech economy will achieve moderate growth throughout the year.
Vladimir Kermit, Director of the Statistical Office, explained, “Household consumption rose in the second quarter. On a quarterly basis, the increase amounted to 0.3 percent, but statistics show a decline of 7.3 percent on an annual basis.” According to him, the moderate quarterly improvement is a reason for optimism. According to analysts, this may indicate a gradual recovery of the Czech economy.