Quarterly GDP preliminary estimate - 4th quarter of 2011

In Q4 2011, gross domestic product adjusted for price, seasonal and calendar effects increased by 0.5%, year-on-year (y-o-y), according to preliminary estimate; on the contrary, compared to Q3 2011 it decreased by 0.3%. In 2011, GDP increased by 1.7%; during the year, it was gradually losing its pace.

In Q4 2011, according to the preliminary estimate based on partial statistical and administrative data sources, gross domestic product (GDP) adjusted for price effects and seasonally adjusted ^*/ increased by 0.5%, y-o-y; compared to Q3 2011 it was by 0.3% lower.
The GDP development is crucially influenced by generation of gross value added broken down by branches, which makes about 90% of its volume. Its insignificant growth at current prices amounting to tenths of a percent was in the last quarter of 2011 absolutely neutralized by an increase of the overall price level. As a result of that, GVA at constant prices stagnated, y-o-y; in comparison to Q3 2011 it dropped by about one percentage point.
Therefore, the y-o-y growth and slackening of the q-o-q GDP decrease were only the contribution of the development of its second component – tax on products, especially the excise tax on tobacco products. It increased markedly, y-o-y, owing to stocking up in relation to change of rates from 1 January 2012.
Development of the demand was in Q4 2011 similar as in the previous quarters. External trade surplus, in which exports of goods and services grew again faster than imports, was still able to compensate gradually decreasing domestic expenditure (mainly on fixed capital formation and, partially, on the general government) and to ensure growth of total demand.

In 2011, GDP increased at constant prices by 1.7%, while it was gradually losing its pace during the year. During the entire year, the driving force of the economy was manufacturing, although y-o-y increments were decreasing there, too, during the year. Steadily above-average results were recorded also in transport and storage, while economic performance of construction has dropped significantly.
Trends in expenditure were relatively stable during the year; domestic final consumption was gradually weakening and the growth of total demand was thus ensured only by a positive development in external trade. A marked, gradually deepening fall of investment activity of enterprises and general government was reflected in considerable decrease of fixed capital formation. Partial decrease was recorded also as for expenditure of general government; household consumption remained after some recovery in Q4 2011 approximately on the level of the preceding year.

Total employment in terms of national accounts (seasonally adjusted) was in Q4 2011 by 0.1% higher than in Q4 2010, while in comparison to Q3 2011 it decreased by 0.3%. In the average, in 2011, the number of employed persons increased compared to 2010 by 0.3% to 5 067 thousand persons.
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^*/ Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal and calendar effects.


Contact person: Jan Heller, director of the Quarterly National Accounts Department, phone (+420) 274 052 8 65, e-mail: jan.heller@csu.gov.cz
End of data collection: 13 February 2012
Internet address: www.czso.cz/csu/czso/1-aktual-hdp
Next News Release will be published on: 9 March 2012 (Quarterly National Accounts, the 4 ^th quarter and the year 2011)