CNB Bank Board member and Chief Executive Director Luděk Niedermayer comments on the Q2 GDP figures
15.9.2000
The GDP figures published today confirm the recovery in the Czech economy. The lower growth in
Q2 reflects the unbalanced trend in the previous period and was expected. The overall result for H1
is more favourable than was forecast at the beginning of the year.
The economic developments in Q2 did not stimulate demand-pull inflation. The pick-up recorded in
inflation is therefore largely due to external effects.
As regards the structure of the growth, both the rise in the volume of investment and the
investment structure were positive features. In particular, the fact that the strongest investment
growth is occurring in investment in machinery is in keeping with the expected effects of the
capital inflow and the upturn in investment activity. This should, with a lag, have a positive
effect on the demand side of the economy.
The worsening of net exports in real terms is associated with the economic recovery. Unlike in
Q1, the GDP growth is attributable to domestic demand.
As for the future, the figures released today set the scene for continued economic growth, which
should not be accompanied in the short run by dangerous imbalances.
A particular risk is the external environment, where the continuing high oil prices are
generating both direct cost pressures and the potential for a weakening of the boom, which would
negatively affect the Czech Republic.
In the area of domestic macroeconomic policies, fiscal policy must be adjusted to the changed
position of the economy as it emerges from the decline and depression into a growth phase.
CNB Bank Board member and Chief Executive Director Luděk Niedermayer comments on the Q2 GDP figures
The GDP figures published today confirm the recovery in the Czech economy. The lower growth in Q2 reflects the unbalanced trend in the previous period and was expected. The overall result for H1 is more favourable than was forecast at the beginning of the year.
The economic developments in Q2 did not stimulate demand-pull inflation. The pick-up recorded in inflation is therefore largely due to external effects.
As regards the structure of the growth, both the rise in the volume of investment and the investment structure were positive features. In particular, the fact that the strongest investment growth is occurring in investment in machinery is in keeping with the expected effects of the capital inflow and the upturn in investment activity. This should, with a lag, have a positive effect on the demand side of the economy.
The worsening of net exports in real terms is associated with the economic recovery. Unlike in Q1, the GDP growth is attributable to domestic demand.
As for the future, the figures released today set the scene for continued economic growth, which should not be accompanied in the short run by dangerous imbalances.
A particular risk is the external environment, where the continuing high oil prices are generating both direct cost pressures and the potential for a weakening of the boom, which would negatively affect the Czech Republic.
In the area of domestic macroeconomic policies, fiscal policy must be adjusted to the changed position of the economy as it emerges from the decline and depression into a growth phase.
Responsible:
Milan Tománek
CNB spokesman