GDP Resources and Uses - 1st quarter of 2023

According to the refined estimate, the gross domestic product remained unchanged, quarter-on-quarter, in the Q1 2023. In the year-on-year comparison, it decreased by 0.4%. The year-on-year GDP decrease was mainly influenced by lower final consumption expenditure of households and by a decrease in inventories, whereas external demand had a positive influence.

According to the refined estimate, the Czech economy in the Q1 2023 stagnated, quarter-on-quarter (q-o-q); in the year-on-year (y-o-y) comparison, it decreased for the first time since the Q1 2021. The gross domestic product (GDP) adjusted for price effects and seasonally adjusted¹⁾ remained unchanged, q-o-q. In the y-o-y comparison, the GDP decreased by 0.4%.

The gross value added (GVA) increased by 0.8%, q-o-q, and by 1.1%, y-o-y, in the Q1 2023. In the q-o-q comparison, the biggest contributors to the GVA growth were manufacturing (2.0% growth), a group of economic activities of trade, transportation, and accommodation and food service activities (+1.5%), and information and communication (3.7%). A decrease occurred in financial and insurance activities (-7.0%).

The y-o-y GVA growth (+1.1%) was the most contributed to by industry +0.4 percentage points (p. p.; growth by 1.6%), real estate activities +0.4 p. p. (+4.5%), and a group of economic activities of public administration, education, and human health and social work activities +0.4 p. p. (+2.6%). The following had a negative influence: construction -0.2 p. p. (-3.8%) and a group of economic activities of trade, transportation, and accommodation and food service activities -0.5 p. p. (-2.8%).

“On the demand side, increasing external demand and consumption expenditure of the general government were the main factors of the quarter-on-quarter GDP development in the Q1 2023. Final consumption expenditure of households and the gross capital formation had a negative influence,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO) comments on the data.

A y-o-y GDP decrease (-0.4%) was mainly influenced by final consumption expenditure of households by -3.0 p. p.²⁾  and change in inventories by -2.8 p. p. The following had a positive influence: final consumption expenditure of general government +0.8 p. p. and external demand +4.6 p. p.

Final consumption expenditure decreased by 0.3%, q-o-q, and by 3.2%, y-o-y. Of that, final consumption expenditure of households decreased by 1.2%, q-o-q. The decrease occurred at expenditure on purchase of non-durable goods and services. In the y-o-y comparison, final consumption expenditure of households decreased by 6.4%. Final consumption expenditure of general government was 1.9% up, q-o-q, and 3.9% up, y-o-y.

Gross fixed capital formation decreased by 1.8%, q-o-q. In the y-o-y comparison it increased by 0.3%. Increasing were investments in transport equipment, ICT, and other machinery and equipment. On the other hand, investments in dwellings and other buildings and structures were decreasing. Change in inventories³⁾ was CZK +43.2 billion, which was, however, by CZK 30.9 bn less compared to the corresponding quarter of the previous year.

The international trade balance of goods and services at current prices amounted to CZK 93.7 billion; thus it was by CZK 92.7 billion higher than in the corresponding period of the previous year. Exports increased in real terms by 2.5%, q-o-q. In the y‑o-y comparison, it increased by 9.5%; the development was influenced the most by an increase in exports of electrical equipment and motor vehicles. Imports decreased by 1.3%, q-o-q; in the y-o-y comparison it increased by 3.3%.

As for the price development in the Q1 2023, the total GDP deflator increased by 12.2%, y-o-y.

The total employment⁴⁾  increased by 0.4%, q-o-q; in the y-o-y comparison, it increased by 1.4%. In total, by 1.0% more hours were worked in the q-o-q comparison; in the y-o-y comparison, it was by 1.6% more.