The economy of the Czech Economy is very successful in the second quarter of 2017 as well

The numbers prove that the economy of the Czech Republic is amongst the strongest in Europe. The GNP in the second quarter of 2017 was higher by 2.5% than the previous quarter. This is a rise of 4.7% compared to the matching quarter last year. According to the Central Statistics Office of the Czech Republic (CSU), these figures are higher than the forecast that projected a 2.3% rise in this quarter, and a 4.5% rise compared to the previous year. The figures prove that the rapid growth measured in the first quarter of 2017 was continuing. In fact, they are proof that the economy of the Czech Republic is one the fastest growing economies in the European Union. The positive developments of the Czech economy derived from a rise in demand, both locally and globally.

While the data pleasantly surprised the projections of the economists, they are disadvantageous in one respect. These positive figures may increase the probability that the Czech National Bank (CNB) might raise interest rates. The rapidly growing economy, the overly calculated labor market, and high inflation, will likely cause the central bank to raise the interest rates this year, probably in November, but perhaps in September,” stated the chief Economist of the Czech Banking Union.

Demand

In terms of demand, the growth of the GDP in the second quarter of 2017 derived from both local and global demand. Together with the continually growing domestic demand, there is a new activity that integrates all of the growth factors in the field of domestic demand. According to the CSU data, the growth in the Gross Domestic Product this year contributed to growth in expenses of 1.7%, a growth in domestic consumption of 1.5% and a growth of 2.1% in external trade.

Expenses

In terms of expenses, the expenses of the households (in all types of consumption) grew by 1.8% during that quarter and by 4.4% compared to that quarter in the previous year. The government expenditures also grew by o.4% during that quarter and by 1.9% in comparison to the same quarter in the previous year. The expenditures on assets also grew in the second quarter of 2017, both relatively to the first quarter and compared to the matching period in 2016.

Investments

Insofar as investments are concerned, investment has grown not merely in the fields of transportation and real estate, but also in the fields of equipment and machinery as well as in the fields of investments in structures. In comparison to the first quarter, the investment in assets in the second quarter was similar (6.3%), but in comparison to the second quarter of the previous year, the rise in investments in assets was 7.7%.

Foreign trade

Stable results in the field of foreign trade has also resulted in the growth of the economy of the Czech Republic. The foreign trade balance in services and goods in the second quarter of 2017 reached 92,000,000 Czech Korunas. Exports grew realistically by 7.3% in comparison to the parallel period in the previous year, as a result of growth in transportation equipment as well as trade in machinery and electrical equipment. Imports grew during this period by 6.2%, significantly contributing to various fields in the auto industry, the manufacture of electrical equipment and trade in basic metals.

Employment

The growth of the Czech economy is accompanied with a rise in employment, and the total number of employed has risen by 0.4% in this quarter. In comparison to the previous year, this is a rise of 1.3% and it is parallel to rises in the economic field in all of the Czech Republic. This is the picture that arises from the analysis of the data performed by the CSU- the Czech Republic Central Statistics Office.

For additional information regarding the economy of the Czech Republic, look here.