Czech GDP growth seen at 2.3 % this year and 2.7% next

Czech January retail sales (including the automotive sector) increased by a solid 6.4 % yoy thus significantly beating the market's estimates. 

Car sales contributed significantly, up 8.7% yoy (12.1% WDA), confirming its position as the dominant driver of the Czech economy. 

A sharp increase was seen in sales adjusted for cars, which grew 5.5% yoy (6.6% WDA) pointing to a strengthening of domestic demand. 

Societe Generale notes its expectations as follows:

• Retail sales growth should continue apace this year, when we expect expansion of 4.9%. 
  
  
• Moreover, trends will mainly be driven by sales adjusted for the automotive sector. 
  
  
• Household consumption should therefore also accelerate and increase by 2.3%.