GDP Resources and Uses - 1. quarter of 2021

According to the refined estimate, the gross domestic product decreased by 0.3%, quarter-on-quarter, in the Q1 2021. In the year-on-year comparison, it decreased by 2.1%. The negative year-on-year GDP development was caused by a decrease in the final consumption of households and in the gross fixed capital formation.

The refined estimate confirmed the decrease of the Czech economy both in the year-on-year (y-o-y) and in the quarter-on-quarter (q-o-q) comparison. The gross domestic product (GDP) adjusted  for  price  effects  and  seasonally  adjusted[1]  was  by  0.3%  lower, 
quarter-on-quarter. In the year-on-year comparison, the GDP decreased by 2.1%.

Despite the overall negative development of the economy, the gross value added (GVA) increased by 0.1%, q-o-q. The GVA increased mainly in construction (+2.6%) and in financial and insurance activities (+5.4%). Manufacturing was also successful (+1.0%). The GVA decreased in most of economic activities of services.

In the year-on-year comparison, the GVA decreased by 2.1%. The GVA formation decrease was influenced the most by the development in a group of economic activities of trade, transportation, and accommodation and food service activities (-12.2%) and in professional, scientific, technical activities and administrative activities (-9.0%). A positive contribution to the growth came mainly from manufacturing with the GVA growth by 3.0%, financial and insurance activities (+6.1%), and a group of economic activities of public administration, education, and human health and social work activities (growth by 2.5%).

On the demand side, the y-o-y decrease of GDP was influenced by lower expenditure on final consumption of households and by gross fixed capital formation. The y-o-y drop of GDP by 2.1% was negatively contributed to by the final consumption of households (-3.2 p. p.[2]) and gross fixed capital formation (-1.3 p. p.). A positive contribution came from expenditure on final consumption of the general government (0.2 p. p.), change in inventories (1.8 p. p.), and external demand (0.4 p. p.).

Final consumption expenditure decreased by 1.3%, q-o-q, and by 3.7%, y-o-y. Of that, final consumption expenditure of households decreased by 0.2% compared to the Q4 2020 and by 6.1% in comparison to the corresponding quarter of the previous year. Especially consumption of semi-durable goods and expenditure on services weakened, y-o-y. Final consumption expenditure of general government was 3.6% down, q-o-q, and 1.3% up, y-o-y.

Gross fixed capital formation (GFCF) increased by 1.6%, q-o-q. In the y-o-y comparison it decreased by 3.6%. Less investments went mainly to purchase of transport equipment and other machinery and equipment.

Change in inventories³ was CZK +18.6 bn in the beginning of the year. Mainly inventories of work in progress and finished goods of industrial enterprises were increasing, by which they significantly contributed to the growth of the total fixed capital formation.

The international trade balance at current prices increased by CZK 17.0 bn, y-o-y, in the Q1 2021 to CZK 93.2 bn. Exports of goods and services decreased by 2.2%, q-o-q; in the y‑o-y comparison, it increased by 4.3%. The year-on-year increase of exports was influenced mainly by trade in electronic and optical products and electrical equipment. Imports of goods and services increased by 4.0%, q-o-q; in the y-o-y comparison it increased by 5.6%. The following contributed significantly to the y-o-y development of imports: increase in import of electrical equipment and sub‑deliveries for the automotive industry. 

As for the price development in the Q1 2021, the total GDP deflator reached 3.5%, y-o-y.

The volume of labour costs[3] increased by 1.8%, y-o-y, in the Q1 2021.

In the Czech Republic, in the Q1 2021, 5 327 thousand persons were employed[4] on average. The total employment increased by 0.3%, q-o-q; in the y-o-y comparison it decreased by 1.6%. In total, by 2.9% more hours were worked in the q-o-q comparison; in the y-o-y comparison, it was by 1.9% less.