Preliminary GDP Estimate – 3rd Quarter 2023

According to preliminary estimates, in the third quarter, the Gross Domestic Product (GDP) decreased by 0.3% on a quarterly basis and 0.6% on an annual basis.

It is estimated that in the third quarter, the seasonally adjusted and price-adjusted Gross Domestic Product (GDP) was 0.3% lower than in the previous quarter and 0.6% lower than in the same quarter of the previous year.

The quarterly decline in GDP was primarily influenced by foreign demand, while domestic demand remained stagnant.

“The annual decline in GDP was negatively affected by reduced household final consumption expenditure and decreased gross capital formation. Foreign demand had a positive impact,” stated Vladimír Kermiet, Director of the National Accounts Department at the CZSO.

In the quarter-on-quarter comparison, most sectors of the national economy saw a decrease in Gross Value Added (GVA). The industry and the combined sectors of trade, transportation, accommodation, and hospitality had a negative impact.

These same sectors were the most affected by the annual decrease in VAT. In contrast, information and communication activities, as well as professional, scientific, technical, and administrative activities, thrived.

Employment decreased by 0.7% on a quarterly basis and increased by 0.5% compared to the same quarter of the previous year.