The Czech economy grew by 1.5% in the third quarter of 2020, according to revised data from the Czech Statistical Office (CSO). This is a decrease from the initial estimate of 1.7% growth. The quarter-on-quarter GDP result remained unchanged at a decrease of 0.2%.

The annual GDP growth was supported by foreign demand and gross fixed capital formation, but household consumption spending had a negative impact on the economy. Real per capita household consumption decreased by 3.3% compared to the previous quarter and fell by 7.8% year-on-year. Real cash and non-cash household income per capita also decreased by 5.2% annually and by 2.3% from the previous quarter.

The average monthly income from employment in the third quarter was 10.7% lower in real terms compared to the previous year. Non-financial corporations saw an increase in their profit rate to 46.6% quarter-on-quarter and year-on-year, but their investment rate declined from the previous quarter to 29.1%.

Article by Prague Forum