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2026-05-29 19:01:22
[Czech National Bank: Q1 GDP Up 0.2% QoQ, 2.2% YoY, Import Surge a Major Unexpected Factor] ⑴ The Czech National Bank commented that the economy continued to grow at a steady pace in the first quarter, but the overall pace slowed slightly. GDP grew by 0.2% QoQ, lower than the 0.7% in the fourth quarter of last year; the year-on-year growth rate slowed to 2.2% from 2.7% in the fourth quarter. Domestic demand continued to grow, with consumption and fixed investment growth accelerating slightly. ⑵ Imports surged 8.2% YoY, the strongest growth rate since 2021, resulting in a negative contribution of foreign trade to GDP growth. Exports grew 5.8% YoY, the highest growth rate in three years, but still lower than the import growth rate. Further declines in inventories reduced overall GDP growth by 0.5 percentage points. ⑶ Fixed investment grew 7.3% YoY, the highest growth rate in four years, with the investment recovery supporting further growth prospects. Household spending grew 3.4% YoY, higher than the 3.2% in the fourth quarter. The first-quarter results were lower than the central bank's forecast, with the surge in imports being the major unexpected factor. The central bank had originally expected economic growth of 2.5% this year, but the weak first-quarter results and the risk of high energy prices increased the possibility that full-year GDP growth would be lower than expected.
