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| Record growth in second quarter but economists disappointed |
| Prag, 06.08.2021 |
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The Czech economy expanded by 7.8 percent year-on-year in the second quarter of 2021, according to a preliminary estimate from the Czech Statistics Office published on Friday. Gross domestic product grew by 0.6 percent on the previous quarter.
The 7.8 percent year-on-year increase in GDP for the April to June period is the highest ever recorded in the Czech Republic. The previous record was from the second quarter of 2006, when GDP growth reached 7.5 percent.
The upswing has been attributed to the easing of restrictions aimed at stemming the spread of Covid-19, which hit the Czech economy hard last year, and in particular foreign demand and increased household consumption.
Vladimír Kermiet, director of the Czech Statistics Office’s national accounts department, told the Czech News Agency that the easing of anti-epidemic measures had enabled households to partially realise deferred consumption.
Household expenditures on services have also increased, Mr. Kermiet said.
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