CNB Confirms That Q4 GDP Data Slightly Missed Its Winter Forecast

The Czech National Bank notes in a statement that by comparison with its winter forecast, GDP grew slightly less year on year in Q4 and its quarterly decline was somewhat deeper than forecasted.

• "The data released on economic activity confirm that the Czech economy switched to a shallow recession in the second half of 2022. Household consumption, which is being affected by the sharp fall in real income and worse sentiment, decreased more significantly in Q4 than expected by the CNB."
• "The contribution of net exports was also lower than forecasted, with exports and especially imports rising faster than projected. Conversely, gross capital formation rose above expectations. This was due to surprisingly high year-on-year growth in fixed investment, which was largely caused by a historical revision."
• "General government consumption recorded moderate year-on-year growth, whereas the CNB had expected a partial drop."
• "The deviations of the individual demand components from the forecast virtually offset each other overall. "
• Click here to see the full statement.