Prague

Czech economy grew by 6.1 percent last year after a record growth of 6.4 percent in 2006, analysts polled by Czech Press Agency said.

In Q4 alone GDP growth is projected by analysts to have slowed to 5.2-5.7 percent from 6 percent in Q3 on a slower growth of household consumption due to higher inflation. Still, however, household consumption was the main driving force of the country’s economy.

Analysts share the opinion of the Czech National Bank and the Finance Ministry.

In the most recent forecasts, the two institutions put last year’s economic growth at 6.1 percent, while in 2006 and a year earlier the economy grew by a record 6.4 percent.

GDP data will be published by the Czech Statistical Office on Friday. It will be a flash GDP estimate and analysts say that one should be cautious about such figures because all economic data for December have not been available yet.

“This year will not be so favourable (as last year),” said Patria Finance chief economist David Marek. “Global economic climate has worsened and higher inflation will apparently cut household consumption,” said Marek, adding that economic growth will reach 4-4.5 percent.

The Finance Ministry forecasts a 4.7-percent economic growth this year, and the Czech National Bank expects a slowdown to 4.1 percent. In 2009, the former predicts a 5.1-percent growth and the latter a 4.6-percent growth.

Based on Czech Press Agency

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