GDP Resources and Uses - 1. quarter of 2024

According to the refined estimate, the gross domestic product increased in the Q1 2024 compared to the previous quarter by 0.3% and by 0.2% in the y-o-y comparison. The y-o-y GDP increase was mainly supported by higher final consumption expenditure of households and by external demand. On the other hand, gross capital formation had a negative effect.

“The refined estimate confirmed a slight quarter-on-quarter as well as year-on-year growth of the Czech economy. The gross domestic product adjusted for price effects and seasonally adjusted[1] increased in comparison with the previous quarter by 0.3% and in the year-on-year comparison by 0.2%,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO), comments on the data.

The gross value added (GVA) decreased in the Q1 2024 by 0.1%, quarter-on-quarter (q-o-q), and by 0.7%, year-on-year (y-o-y). In the q-o-q comparison, a negative effect mainly of the following prevailed: manufacturing (a decrease by 2.1%) and real estate activities (-2.0%). What had a positive effect on the GVA development was mainly a group of economic activities of trade, transportation, accommodation and food service activities (growth by 1.9%).

The y-o-y development of the GVA (-0.7%) was negatively influenced especially by industry (-0.4 percentage point (p. p.); a decrease by 1.5%) and by construction (-0.2 p. p.; a drop by 4.0%). Financial and insurance activities were successful (+0.2 p. p.; +4.9%).  

On the demand side, increasing final consumption expenditure of households, final consumption expenditure of general government, and change in inventories were the main factors of the q-o-q gross domestic product (GDP) growth in the Q1 2024. Gross fixed capital formation and external demand had a negative influence.

The y-o-y GDP increase (+0.2%) was positively influenced by final consumption expenditure of households (+1.2 p. p.[2]), final consumption expenditure of general government (+0.7 p. p.), and external demand (+2.1 p. p.). Gross capital formation had a negative influence (-3.8 p. p.).

Final consumption expenditure increased by 0.9%, q-o-q, and by 2.5%, y-o-y, of which final consumption expenditure of households increased by 1.0%, q-o-q, and by 2.1%, y-o-y. An increase mainly occurred in expenditure on purchase of non-durables. Final consumption expenditure of general government increased by 1.0%, q-o-q, and by 3.5%, y-o-y.

Gross fixed capital formation decreased by 7.9%, q-o-q, and by 2.7%, y-o-y. A y-o-y decrease occurred in investments in dwellings, other buildings and structures, and mainly in investments in information and communication technology (ICT) and in other machinery and equipment. Investments in transport equipment were increasing. The change in inventories[3] was CZK +5.9 billion, which was, however, by CZK 51.1 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 131.6 bn; thus it was by CZK 69.0 bn higher than in the corresponding period of the previous year. Exports increased in real terms by 2.2%, q-o-q. In the y-o-y comparison it increased by 2.5%; the development was influenced the most there by an increase in exports of motor vehicles. Imports increased, quarter-on-quarter, by 2.7% and in the y-o-y comparison it decreased by 1.1%.

As for the price development in the Q1 2024, the total GDP deflator increased by 3.7%, y-o-y.

Total employment[4] remained unchanged compared to the previous quarter and in the y-o-y comparison it increased by 0.3%. In total, by 1.8% less hours were worked compared to the previous quarter and in the y-o-y comparison, it was by 0.6% less.

 
[1] Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal, and calendar effects.

Notes:
Responsible head at the CZSO: Vladimír Kermiet, Director of the National Accounts Department, phone number (+420) 274 054 247, e‑mail: vladimir.kermiet@csu.gov.cz
Contact person: Jan Benedikt, Quarterly Estimates Unit, phone number (+420) 274 052 750, e-mail: jan.benedikt@csu.gov.cz
Used data sources updated as at: 28 May 2024
Time series: Quarterly national accounts (czso.cz)
The news release web page: https://csu.gov.cz/gdp-national-accounts
Next release will be published on: 30 July 2024
(GDP preliminary estimate for the second quarter of 2024)