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the Czech economy grew slightly, the statistics announced. Dailo se construction industry | Business

Expenditure on final consumption and the creation of gross capital contributed positively to the interim GDP growth. However, the negative influence of foreign demand persisted. The group of trade, transport, accommodation and hospitality industries contributed the most to the growth. The construction industry and the service industry also flourished.

According to the parties, only domestic demand contributed to quarter-on-quarter GDP growth. The slight increase in gross value added was supported by a group of service industries, on the other hand, industry and construction stagnated, shared Vladimr Kermiet, editor of the department of native t S.

Slow down economic growth, economists

tpn Keek, chief economist of BHS, believes that if people limit their purchases, the economy may slow down. Delayed consumption due to the pandemic, combined with the fear of further health problems, has led to sharp declines in households. However, this may change in the following quarters, because it can be assumed that many people have bought into the collection and now their losses will limit it. The decline in consumption will then significantly slow down the pace of economic growth in the following period,

According to David Vagenknecht, an analyst at Raiffeisen Bank, the Czech economy is showing a good pace from inertia. As a result, there will be an increase in activity, when the economy will recover from the pandemic eye, and the negative influence of the wolf on Ukraine. The industry before the decline was covered by the production of automobiles during May and April, Fri.

For the remaining two quarters of this year, our forecast will move in a pessimistic direction. the Czech economy will be slowed down by price hikes and gas supply failures in the critical winter months, due to which we expect a recession in the industrial sector. Support will not be provided by household consumption. Fiscal aid will dampen the complex situation of households. After today’s preliminary results, we continue to forecast economic growth of 2.5 percent this year and 0.9 percent in the fifth year, added Vagenknecht.

According to our view, further development will be affected by high inflation, which cuts off household income and is reflected in the decline of consumer spending. According to us, the recovery of the high growth rate of the economy will happen soon and in the second half of the fifth year, when inflation should gradually weaken and the growth of nominal wages should dampen the negative effects on the purchasing power of households, says Jana Steckerov from Komern banka.

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