The gross domestic product of Czech Republic in the first quarter 2015 increased by 4.2%, year-on-year, i.e. by 0.3 percentage point more than expected in the preliminary estimate.
The refined estimate confirmed that the growth of the economy of the Czech Republic in the beginning of 2015 markedly accelerated. Compared to the Q4 2014, the GDP increased at constant prices by 3.1%.
The favourable economic development was shown throughout the entire Czech economy. Manufacturing increased by 6.8%, y-o-y, and by 3.7% when compared to the Q4 2014. The y-o-y growth in construction was 2.6%. Also most of the branches in services grew in the y-o-y comparison.
On the demand side, the GDP growth was caused by both domestic and foreign factors. The trend of strengthening of the domestic demand that started in 2014 continued also in the Q1 2015 and markedly overcame the influence of the foreign demand. Besides an increasing household consumption, what also contributed substantially to the GDP growth were investment activities supported by formation of inventories related to production activities. External trade contribution has relatively decreased; however, it was still positive.
Faster economic growth was positively reflected also in the labour market. In the Q1 2015, in terms of national accounts, 5 158 thousand persons were employed on average in the Czech Republic, which was a 1.1% growth, y-o-y, and 0.7%, q-o-q.
Analysis of the Czech Statistical Office.
Comment of the Czech National Bank.