GDP preliminary estimate - 1st quarter of 2013

In the Q1 2013 the gross domestic product adjusted for price, seasonal, and calendar effects decreased by 1.9%, year-on-year, and by 0.8%, quarter-on-quarter, according to the preliminary estimate.

In the Q1 2013 the gross domestic product (GDP) adjusted for price effects and seasonally adjusted ^*/ decreased by 1.9%, y-o-y, and by 0.8%, q-o-q, according to the preliminary estimate. From currently available partial statistical and administrative data sources it results that the deepening y-o-y and q-o-q GDP decrease was contributed to by basic demand and offer aggregates in a markedly differentiated way.

Demand components
The development of final consumption expenditure of households, general government, and non-profit institutions serving households in the last quarter was no longer the main cause of the economic recession. Low inflation supported stabilisation of demand of households especially for non-durable consumer goods. Fixed capital formation is affected for a long-term by decreasing willingness of enterprises and general government to invest mainly to dwellings and other buildings and structures. Important turnaround occurred during last months in the external trade development and its contribution to the GDP formation. Decreasing external demand due to overall economic recession is gradually reflected in export opportunities of the domestic economy. After three years of growth, domestic export dropped in the last quarter and external trade was no longer a source of the GDP growth.

Structure of the supply
Drop of external demand was reflected mainly in decreased gross value added formation of industries oriented on export; among the most affected was production of transport equipment. Decreasing investment activity caused further fall of construction. Year-on-year and especially quarter-on-quarter GDP development were negatively influenced by imbalanced collection of some taxes on products. Marked stocking up on tobacco products and related to that high collection of the relevant excise tax in the Q4 2012 were the reasons why the income from the tax was deeply under the average in the Q1 2013.
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^*/ Unless otherwise stated, all data presented in this News Release are adjusted for price, seasonal, and calendar effects.


Contact person: Jan Heller, Director of the Quarterly National Accounts Departm ent, phone number: (+420) 274 052 865, e-mail: jan.heller@csu.gov.cz
Used data sources updated as at: 13 May 2013
Related CZSO web page: /1-aktual-hdp
Next News Release will be published on: 4 June 2013 (national accounts for the Q1 2013)