Gross domestic product - 3. quarter of 2007

Real GDP grew by 6.0% year-on-year in the third quarter of 2007. Economic growth of six or more per cent has thus been recorded for ten quarters. Final household consumption expenditure increased by 5.6%, gross fixed capital formation by 5.7%, exports by 14.8% and imports by 14.2%. The overall price level measured by the implicit GDP deflator rose by 3.3% year-on-year.
According to preliminary estimates, real GDP increased by 6.0% in Q3 2007 compared with Q3 2006. In comparison with the previous quarter, GDP adjusted for seasonal and working day effects grew by 1.4%. GDP for the period Q1-Q3 2007 rose by 6.3%, compared with Q1-Q3 2006.
Together with this GDP estimate, selected quarterly indicators have been updated as a follow-up to the time series of annual national accounts 2004–2006 published in October. The estimate of GDP growth for Q1 2007 remained unchanged (6.4%) and for Q2 2007 was increased from 6.0% to 6.3%.

Supply side of the economy

Nominal GDP grew by 9.5% year-on-year and reached CZK 900.0 billion in Q3 2007, the overall price level measured by the implicit GDP deflator rose by 3.3%. Growth of prices contributed by over a third to the year-on-year increase of nominal GDP by CZK 78.3 billion.

Total gross value added (GVA) by industry grew by 5.7% ( constant prices), mainly due to manufacturing (GVA up by 9.8%), wholesale and retail trade (+10.3%) and real estate, renting and business activities (+13.4%).

Demand side of the economy

The contributions of individual expenditure components to the growth of real GDP varied – final household consumption expenditure and gross capital formation contributed by 2.6 p.p. (both), the contribution of the external trade balance was 0.8 p.p.

In comparison with Q3 2006, household final consumption expenditure at constant prices rose by 5.6%. Expenditure at current prices increased by CZK 33.0 billion (+8.3%) and reached CZK 432.4 billion. The highest nominal increases were observed for expenditure on food, tobacco products, recreation and motor vehicles. The price level measured by the overall deflator was higher by 2.6% year-on-year.
The year-on-year growth of gross fixed capital formation (+5.7%, constant prices) was pulled by developer projects, public investment in transport infrastructure and company investments in machinery and transport equipment. Investments stood at CZK 219.6 billion (current prices).
Nominal increase in inventories was CZK 37.6 billion in Q3 2007, of which both a) work-in-progress and finished goods and b) goods for resale grew by CZK 16.0 billion and materials and supplies by CZK 5.6 billion.
The balance of external trade in goods and services reached a surplus of CZK 32.5 billion (current prices), which was up CZK 12.9 billion on Q3 2006. Exports rose by 15.8% (current prices) to CZK 689.3 billion and imports by 14.1% to CZK 656.8 billion. Export prices increased by 0.9% year-on-year and import prices fell by 0.1%.

EU 27 and Euro area (EU 13) GDP grew by 2.9% and 2.7% respectively year-on-year (by 0.8% and 0.7% respectively quarter-on-quarter) in Q3 2007, according to Eurostat Release of 30 November.
Please note that the Czech Statistical Office will adhere to the standard concept of GDP presentation applied by Eurostat and, starting from the year 2008, GDP adjusted for seasonal and working day effects will be published as the key figure. Such GDP estimate may sometimes very slightly differ from the one used hitherto; model calculations indicate that differences in excess of 0.2 percentage points are very rare. For example, the discrepancy between the year-on-year growth of GDP non-adjusted and GDP adjusted for seasonal and working day effects was 0.1 p.p. (the figures being +6.0% and 6.1% respectively) in the third quarter of 2007.

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Contact: Jan Heller, tel. (+420) 274 052 865, e-mail: jan.heller@csu.gov.cz
Related time series: /produkty/hdp_ts
Selected tables: http://www.czso.cz/eng/edicniplan.nsf/p/50n1-el