Czech economy grows a little faster than estimated in Q3
Nov 29 (Reuters) -The Czech economy grew a touch faster than previously estimated in the third quarter, expanding by 0.4% quarter-on-quarter as household demand continued to drive a modest recovery.
In year-on-year terms, gross domestic product grew by 1.3%, the statistics office said, in line with a preliminary estimate. The quarterly figure, which rose for a fourth straight quarter, was revised up from a flash estimate of 0.3%.
"On the demand side, growing final consumption expenditure of households and change in inventories were the main factors of the quarter-on-quarter growth of GDP in Q3 2024," said Vladimir Kermiet, director of national accounts at the statistics office.
The Czech economy, like others in central Europe, has been buoyed by renewed consumer demand as wages rise and inflation eases back to target levels following price surges of recent years that had hammered household budgets.
But the uptick has not been as strong as expected while manufacturers are still facing subdued demand from trade partners, like Germany, whose economy - Europe's largest - is struggling.
Earlier this month, the Czech National Bank scaled back its GDP forecasts, expecting a 1.0% rise in 2024, down from 1.2% seen previously, and an acceleration to 2.4% in 2025, milder than a previous forecast of 2.8%.
The bank has been steadily cutting interest rates from more than two-decade highs in the past year as inflation hangs near its 2% target. But it has said that it will be cautious on further steps, with one board member already supporting no change to rates at the last meeting on Nov. 7.
Reporting by Jason Hovet in Prague; editing by Mark Heinrich
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