The Czech economy grew much faster than economists expected in the first three months of the year and at the fastest pace in more than seven years, preliminary estimates from the Czech Statistical Office showed Friday.
Gross domestic product rose a price-and-seasonally adjusted 3.9 percent year-on-year, which was nearly double the 2 percent growth economists’ had expected. In the fourth quarter of 2014, the economy expanded 1.4 percent.
The economy grew for the sixth consecutive quarter. Previously, GDP grew 3.9 percent in the first and second quarters of 2008 after a 5.3 percent expansion in the final three months of 2007.
In the first three months of the year, the GDP rose 2.8 percent quarter-on-quarter, which was more than treble the 0.8 percent expansion forecast by economists. In the fourth quarter of last year, the GDP rose 0.4 percent.
“In the beginning of 2015, the growth of the Czech economy has markedly accelerated,” the agency said.
“Continuing development of almost all industries of manufacturing, especially manufacture of motor vehicles and other transport equipment and also machinery and equipment were of key importance for favorable development of the Czech economy.”
Underpinned by the stronger economic performance, employment grew 1.1 percent year-on-year in the first quarter and 0.7 percent from the previous quarter. The quarterly growth was the biggest since the start of 2008, the agency said.
The material has been provided by InstaForex Company – www.instaforex.com