GDP Resources and jobs – 3rd quarter 2021

According to the refined estimate, gross domestic product grew 1.5% qoq in the third quarter of 2021 and 3.1% yoy. The positive development of GDP was supported only by domestic demand.

The refined estimate confirmed the increase in the Czech economy both quarter-on-quarter (qoq) and year-on-year (year-on-year) comparison. The gross domestic product (GDP) adjusted for price effects and adjusted for seasonal variationsincreased by 1.5% quarter on quarter and 3.1% year on year.

The gross added value (VAB) increased by 1.4% quarter on quarter. GVA increased mainly in the group of economic activities of trade, transport and storage, accommodation and food services (+ 7.0%) and inthe group of economic activities of public administration, education, human health and social action activities (+ 1.9%). Construction (+ 0.5%) and most service economic activities were also successful. There has been a decline in the industry (-2.4%).

In the from year to year Comparison, GVA increased by 2.9%. The increase in the formation of GVA was most influenced by the development of the economic activity group of trade, transport and warehousing, and accommodation and catering activities. (6.6% growth) and in the group of economic activities of public administration, education, human health and social action activities (+ 3.6%). Financial and insurance activities (+ 7.2%) and professional, scientific, technical and administrative activities (+ 5.3%) were also successful.

On the demand side, the quarterly increase in GDP was mainly influenced by the increase in final consumption expenditure of households and general government and by changes in inventories. Conversely, external demand had a negative influence. The annual GDP growth of 3.1% is due to the following elements: total final consumption expenditure (3.4 pp), gross capital formation (5.6 pp) and external demand (-5.8 pp ).

Final consumption expenditure increased by 3.7% quarter on quarter and 5.9% year on year. Of this amount, final consumption expenditure of households increased by 4.3% compared to the previous quarter and, compared to the corresponding quarter of the previous year, by 6.4%. In particular, spending on services has increased. General government final consumption expenditure increased 2.6% quarter on quarter and 5.0% year on year. In annual comparison, collective consumption expenditure again rose sharply.

Gross fixed capital formation decreased by 3.1% quarter on quarter; the decline occurred in all types of assets. In annual comparison, it increased by 0.7%.

Inventory change3was CZK +114.0 billionin Q3 2021. Inventories of goods, materials and work in progress have increased sharply.

The international trade balance at current prices collapsed by the record 102.1 CZK billion,
year-on-year, in the third quarter of 2021 to CZK 15.8 billion. Exports of goods and services fell 5.9% quarter on quarter; in annual comparison, it decreased by 2.3%. The year-over-year decline in exports was mainly influenced by lower exports of motor vehicles and trade in coke and petroleum products. Imports of goods and services fell 3.3% quarter on quarter and increased 8.3% year on year. The following contributed significantly to the increase in year-over-year imports: increased imports of base metals and electrical equipment, while imports of cars and sub-deliveries for the automotive industry decreased.

As for the price development in the third quarter of 2021, the total GDP deflator reached 4.6% year-on-year.

The volume of labor costsincreased by 8.9%, year-on-year, in the third quarter of 2021.

In the Czech Republic, in the third quarter of 2021, an average of 5,366,000 people were employed. The total employmentincreased by 0.4%,qqq; in annual comparison, it increased by 0.6%. The number of hours worked was 3.6% higher, qoq, and in annual comparisonit increased by 0.5%.

Responsible manager at CZSO: VladimirKermiet, Director of National Accounts, telephone number (+420) 274 054 247, e-mail: [email protected] Contact person: Jan Benedikt, Head of Quarterly Estimates Unit, telephone number (+420) 274 052 750, e-mail: [email protected]
Data sources used updated as of: November 23, 2021
Time series: https://www.czso.cz/csu/czso/hdp_ts
The press release web page: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate The next version will be released on: February 1, 2022
(preliminary estimate of GDP for the fourth quarter of 2021)