3/4/2016, 9:47 AM (Source: TeleTrader)
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Czech economy grows 4.0% in Q4 2015

The economy of the Czech Republic expanded at the rate of 4.0% year on year in the fourth quarter of 2015, up 0.3 percentage points more than previously estimated, according to data from the Czech Statistical Office (ČSU) published on Friday.

The rate of growth was 0.5% higher compared to the previous quarter. This translates into annual expansion of 4.3% for the entire 2015.

The manufacturing sector grew most, with best results in transport equipment, metals, plastic products, and food production, up 1.8 percentage points. Trade, transport, accommodation and food service activities were 0.5% higher. While it was weaker in the last quarter, construction production saw heathy rise of 3.4% during 2015.

It was both domestic and foreign demand that spurred this growth, according to the ČSU. Final consumption expenditure of households maintained quarterly growth rate of 0.9%, increasing 2.9% year on year. The household consumption rose by 0.9 points, and this was offset with the same rate drop in the fixed capital formation. In the comparison with the corresponding period of the previous year, however, the fixed capital formation remained still very high, up 7.9%.

Employment in the Central European country of 10.5 million people increased in the fourth quarter by 0.2%, and by 1.1% for the same period year on year.

The annual inflation rate stood at 0.4% in January, while the prices for the entire 2015 rose by 0.3%.

Average gross wages in the Czech Republic in the third quarter of 2015 were at 26,072 Czech koruna (€964.2729).

The stock market in Prague traded up 0.21% to 1,122 points by 9:44 a.m. CET. The Czech koruna was fractionally weaker to the euro, down 0.04%, with €1 buying 27.0382 koruna. The currency held well losing just 1.61% throughout 2015.


Breaking the News / ZR