According to the CZSO’s estimate released today, real GDP increased by 6.6% year on year in 2007 Q4. Seasonally and working-day adjusted quarter-on-quarter GDP growth was 1.7%. These growth rates are 0.3 and 0.2 percentage point lower than the CZSO’s preliminary estimates of 15 February 2008. In 2007 as a whole, annual GDP growth was up by 6.5%.
According to the CZSO, the formation and use of GDP were affected by increased expenditures of health insurance companies and above-average road network repairs in 2007 Q4. In both cases, this affected the government’s final consumption expenditure. The CZSO estimates that GDP would have increased by 6.0% year on year in Q4 without such effects.
The year-on-year figure for 2007 Q4 (6.6%) is 0.9 percentage point higher than the CNB’s current forecast. The quarter-on-quarter change was 0.6 percentage point higher than the CNB had expected.
Some deviations from the CNB’s forecast were also recorded in the structure of economic growth. In line with the CNB’s expectations, growth in household consumption was slower, primarily due to lower growth in real income, owing to higher inflation. By contrast, the pick-up in fixed investment growth was higher than forecasted by the CNB. Given the above extraordinary effects (health, road network repairs), the growth rate of government consumption outpaced the CNB’s expectations.In line with the CNB’s current forecast, both exports and imports of goods and services slowed. However, the improvement in new exports was generally more pronounced than expected by the CNB.
According to the CZSO, the 6.8% year-on-year growth in gross value added at constant prices was due mainly to three industries in 2007 Q4: manufacturing (with a contribution of 2.7 percentage points, linked with the continuing construction of new production facilities primarily in export-oriented industries), wholesale and retail trade (2.4 percentage points) and financial intermediation and business services (1.3 percentage points).
Tomáš Holub, Executive Director, Monetary and Statistics Department
The CNB comments on the GDP figures for 2007 Q4
According to the CZSO’s estimate released today, real GDP increased by 6.6% year on year in 2007 Q4. Seasonally and working-day adjusted quarter-on-quarter GDP growth was 1.7%. These growth rates are 0.3 and 0.2 percentage point lower than the CZSO’s preliminary estimates of 15 February 2008. In 2007 as a whole, annual GDP growth was up by 6.5%.
According to the CZSO, the formation and use of GDP were affected by increased expenditures of health insurance companies and above-average road network repairs in 2007 Q4. In both cases, this affected the government’s final consumption expenditure. The CZSO estimates that GDP would have increased by 6.0% year on year in Q4 without such effects.
The year-on-year figure for 2007 Q4 (6.6%) is 0.9 percentage point higher than the CNB’s current forecast. The quarter-on-quarter change was 0.6 percentage point higher than the CNB had expected.
Some deviations from the CNB’s forecast were also recorded in the structure of economic growth. In line with the CNB’s expectations, growth in household consumption was slower, primarily due to lower growth in real income, owing to higher inflation. By contrast, the pick-up in fixed investment growth was higher than forecasted by the CNB. Given the above extraordinary effects (health, road network repairs), the growth rate of government consumption outpaced the CNB’s expectations.In line with the CNB’s current forecast, both exports and imports of goods and services slowed. However, the improvement in new exports was generally more pronounced than expected by the CNB.
According to the CZSO, the 6.8% year-on-year growth in gross value added at constant prices was due mainly to three industries in 2007 Q4: manufacturing (with a contribution of 2.7 percentage points, linked with the continuing construction of new production facilities primarily in export-oriented industries), wholesale and retail trade (2.4 percentage points) and financial intermediation and business services (1.3 percentage points).
Tomáš Holub, Executive Director, Monetary and Statistics Department