Czech GDP growth likely dropped sequentially in Q3 2017

The Czech Republic’s economy had grown 2.5 percent on sequential basis in the second quarter of this year and had expanded 4.7 percent year-on-year. The 2.5 percent print was the highest quarter-on-quarter in the modern era. Even if the economic scenario is more or less the same at the moment, the economic growth is expected to have decelerated in the third quarter, owing mainly to a slightly lower investment expenditures and higher imports, driven by strong domestic demand, noted Erste Group Research.

The Czech economy is likely to have recorded -0.3 percent sequentially in the third quarter and 4.1 percent on a year-on-year basis. The economic development in Czech Republic is expected to stay favorable in the quarters ahead, as GDP growth might come in at 4.1 percent for the whole of 2017 and at 3.4 percent next year.

“The slowdown in 2018 will be affected by the appreciating koruna and higher CNB rates, but does not mean any important change in the economic story, in our view”, added Erste Group Research.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest