End of measures help economy to recover and grow

(ČIA) The lifting of restrictive epidemiological measures, which had limited the activity of some trade and services, gave the Czech economy a much-needed growth boost in 2Q 2021. GDP grew by 8.2% y/y and 1.0% q/q. Marek Roječek, chairman of the Czech Statistical Office, said that domestic demand was the main contributor to the growth of the economy. Household consumption was growing strongly and investment activity was also recovering. By contrast, foreign demand was negative. GVA also grew, with the performance of most sectors improving compared to 1Q. Price growth accelerated significantly. This was partly due to the year-on-year increase in oil prices, which was reflected in a strengthening of annual consumer price growth to 2.9%. The economic recovery was reflected in employment in most sectors. Total employment was up 0.3% y/y, the first increase since 3Q 2019. The unemployment rate fell to 2.9% in June. Average wages rose 1.2% y/y to CZK 38,275 in 1Q.



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