Czech GDP Growth Drops in Q3

The Czech Republic’s economy had grown 2.5% on sequential basis in the second quarter of this year and had expanded 4.7% year-on-year. The 2.5% print was the highest quarter-on-quarter in the modern era, Econotimes reported. Even if the economic scenario is more or less the same at the moment, the economic growth is expected to have decelerated in the third quarter, owing mainly to a slightly lower investment expenditure and higher imports, driven by strong domestic demand, noted Erste Group Research. The Czech economy is likely to have recorded -0.3% sequentially in the third quarter and 4.1% on a year-on-year basis. The economic development in Czech Republic is expected to stay favorable in the quarters ahead, as GDP growth might come in at 4.1% for the whole of 2017 and at 3.4% next year. “The slowdown in 2018 will be affected by the appreciating koruna and higher Czech National Bank rates, but does not mean any important change in the economic story, in our view”, added Erste Group Research.