PRAGUE, Nov 13 (Reuters) - The Czech economy grew 0.8
percent over the previous three months in the third quarter,
slower than analysts' expectations of 1.0 percent growth, data
showed on Friday.
Data also showed retail sales fell by 7.6 percent
year-on-year in September, more than analysts' estimates.
Czech gross domestic product fell 4.1 percent year-on-year
in real terms in the third quarter. The market had expected a
seasonally-adjusted year-on-year fall of 4.8 percent, following
a revised second quarter drop of 4.7 percent.
The statistics office did not release a breakdown of its
flash GDP estimate, but said the annual drop was mainly due to a
fall in capital formation and also weaker foreign trade as
global demand suffered in the economic crisis.
Domestic demand continued to rise slightly.
The statistics office said the economy was back at a level
last seen in the first quarter of 2007.
The Czech quarter-on-quarter figure was worse than in
neighbouring Slovakia, which posted a 1.6 percent rise over the
previous three months.
In Hungary, the economy fell 7.2 percent year-on-year in
July to September.
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KEY POINTS:
GROSS DOMESTIC PRODUCT
(pct change) Q3/09 Q2/09 Fcast Q3
quarter/quarter 0.8 0.3 (0.1) 1.0
year/year -4.1 -4.7 (-5.5) -4.8
(change in percent) Sept Aug Sept forecast
RETAIL SALES (y/y) -7.6 -3.5 -6.0
Details of Q3 GDP data..........................[]
Details of September retail sales data..........[]
COMMENTARY:
DAVID MAREK, CHIEF ECONOMIST, PATRIA FINANCE
"At first sight it looks like a slight disappointment
because the figures are below consensus. But on the other hand
we can see previous figures revised upward so that can be the
source for a negative surprise."
"Overall, it can be seen as another sign of improvement in
the economic situation in the Czech Republic. We are out of the
woods, and now it is about the pace of recovery. It will depend
mainly on development in Germany and other countries."
"Implications on monetary policy is now the most likely
scenario is stability in interest rates."
MARKET REACTION:
Crown marginally firmer against the euro <EURCZK=> at 25.455
from 25.470 ahead of the data.
- Statistics bureau says year-on-year drop mainly driven by a
fall in capital formation and foreign trade.
- In the second quarter, the decline was revised to 4.7 percent
year-on-year from originally reported decrease of 5.5 percent.
Quarter-on-quarter growth was revised to 0.3 percent from 0.1
percent.
- In the first quarter, the decline was revised to 4.3 percent
year-on-year from decrease of 4.5 percent year-on-year and to
4.5 percent quarter-on-quarter from drop of 4.8 percent.
- The Czech Statistics Office will release full details on
December 9.
BACKGROUND:
- For story on analysts' expectations before the data release,
double click on []
- Slovak Q3 GDP []
- Hungary's Q3 GDP []
- Poland's Q2 GDP []
LINKS:
- For further details on third quarter GDP and past data,
Reuters 3000 Xtra users can click on the Czech Statistical
Bureau's Website:
http://www.czso.cz/eng/csu.nsf/kalendar/2004-hdp
- For LIVE Czech economic data releases, click on <ECONCZ>
- Instant Views on other Czech data []
- Overview of Czech macroeconomic indicators []
- Key data releases in central Europe []
- For Czech money markets data click on <CZKVIEW>
- Czech money guide <CZK/1>
- Czech benchmark state bond prices <0#CZBMK=>
- Czech forward money market rates <CZKFRA>
(Reporting by Jason Hovet, editing by Jan Lopatka)
