GDP Resources and Uses - 2. quarter of 2024

The refined estimate confirmed an increase of the Czech economy. The gross domestic product (GDP) adjusted  for  price  effects  and  seasonally  adjusted¹  was  by  0.3%  higher, quarter-on-quarter (q-o-q). In the year-on-year (y-o-y) comparison, it increased by 0.6%.

The gross value added (GVA) increased by 0.5%, q-o-q, and by 0.1%, y-o-y, in the Q2 2024. The q-o-q growth was mainly contributed to by a group of economic activities of trade, transportation, and accommodation and food service activities (growth by 2.3%). The following were also successful: financial and insurance activities, professional, scientific and technical activities, and administrative activities. Manufacturing had a negative effect (a decrease by 1.7%). 

The y-o-y GVA development (+0.1%) was positively influenced mainly by a group of economic activities of trade, transportation, and accommodation and food service activities +0.4 percentage point (p. p.; growth by 2.3%) and by financial and insurance activities +0.2 p. p. (+7.3%). The following ones had a negative influence: industry -0.7 p. p. (-2.5%) and construction -0.1 p. p. (-2.4%).

“In the Q2 2024, the Czech economy performance increased by 0.3%, q-o-q. Mainly increasing final consumption expenditure and gross fixed capital formation were the main factors of the growth. On the other hand, a change in inventories had a negative influence,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO) comments on the data. 

The y-o-y growth of GDP (+0.6%) was positively influenced by expenditure on final consumption of households +1.2 p. p.², expenditure on final consumption of general government +0.8 p. p., gross fixed capital formation +0.4 p. p., and external demand +0.3 p. p. A change in inventories had a negative effect -2.1 p. p.

Final consumption expenditure increased by 0.6%, q-o-q. In the y-o-y comparison, it increased by 2.0%. Of that, final consumption expenditure of households increased by 0.2%, q-o-q, and by 1.0%, y-o-y. Year-on-year, mainly expenditure on purchase of non-durables and services were increasing. Final consumption expenditure of general government increased by 1.5%, q-o-q, and in the y-o-y comparison it was by 4.3%.

Gross fixed capital formation increased by 1.9%, q-o-q, and by 0.7%, y-o-y. Increasing, y-o-y, were investments in dwellings, other buildings and structures, transport equipment, and intellectual property products. Investments in ICT and in other machinery and equipment decreased. Change in inventories³ was CZK +8.1 billion, which was, however, by CZK 27.1 billion less compared to the corresponding quarter of the previous year. 

The international trade balance of goods and services at current prices reached the value of CZK 143.0 billion; it was thus by CZK 45.4 billion higher than in the corresponding period of the previous year. Exports increased in real terms by 0.6%, q-o-q. In the y‑o-y comparison, it increased by 0.4% thanks to increasing exports of services by 6.8%. Imports increased by 0.7%, quarter-on-quarter; in the y-o-y comparison, imports decreased by 1.5%.

As for the price development in the Q2 2024, the total GDP deflator increased by 4.2%, y-o-y.

The volume of labour costs³ increased in the Q2 2024 by 5.5%, y-o-y.

The total employment⁴  increased by 0.5%, q-o-q; in the y-o-y comparison, it increased by 0.2%. In total, by 0.5% more hours were worked in the q-o-q comparison; in the y-o-y comparison, it was by 1.0% less.