GDP preliminary estimate - 4th quarter of 2007

Real GDP increased in Q4 2007 by 6.9% year-on-year, employment was up by 1.9%. In total for the year 2007 real GDP grew by 6.6%. These figures come from preliminary estimate of GDP that is being published for the first time.
According to preliminary estimate, real gross domestic product increased by 6.9% in Q4 2007. Estimates of year-on-year growth for the previous quarters of 2007 have been updated to 6.5% for Q1 and Q2 (from former 6.4% and 6.3% respectively) and 6.4% for Q3 (from 6.0%); in the year 2007 in total GDP increased by 6.6% compared to the year 2006.

The growth of economic performance was connected with increasing employment. According to an estimate based on the results of the labour force sample survey in combination with available administrative data, employment in the national economy in Q4 2007 was by 1.9% higher than in Q4 2006.

Adjusted for seasonal and working day effects, GDP in Q4 2007 compared to Q3 2007 increased by 1.9% and employment by 0.6%. In comparison to Q4 2006, seasonally adjusted GDP grew by 7.0% (employment by 1.9%).

On the supply side of the economy, the growth of real gross value added was mainly due to the energy industry, manufacturing and wholesale and retail trade.

It is estimated that contributions to the growth of GDP demand were made by final consumption expenditure on the one hand, and capital formation and external trade results on the other. An extraordinary impetus for growth in Q4 2007 were expenditures of health insurance companies classified to the general government sector, which contributed to GDP increase by approximately 0.5 percentage points. This is probably due to higher demand of the population for health services before the introduction of medical fees in 2008. Household final consumption expenditure maintained stable high growth, but only at current prices; growth at constant prices in Q4 2007 was reduced by a 4.4% year-on-year increase in the overall price level of household expenditure on final consumption.
This preliminary estimate is based on available information from relevant statistical surveys and administrative sources; mathematical and statistical methods, imputations and expert guesses have been used. Please note that for this reason the standard estimate of GDP and GDP components to be published on 7 March 2007 may slightly differ from the data released now.

The Czech Statistical Office informs you that on the occasion of GDP preliminary estimate for Q1 2008 it will adhere to the standard concept of GDP presentation applied by Eurostat and GDP adjusted for seasonal and working day effects will be published as the principal information. The figure may sometimes differ from the indicator used up to now, but only quite exceptionally the difference might exceed 0.2 percentage points.

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Contact: Jan Heller, phone (+420) 274 052 865, e-mail: jan.heller@csu.gov.cz