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Bloomberg reported that the Czech economy expanded on an annual basis in the first 3 months for the first time in five quarters, paving the way for the central bank to tighten policy in the second half of the year.
The statistics office in Prague said in a detailed GDP statement on its website that gross domestic product rose 1.1% from a year earlier after a 3.2% contraction in the previous quarter. Separate data showed the inflation rate rose to 1.2% in May, from 1.1% in the previous month, above the central bank's forecast of 0.9%.
East European countries are emerging from the worst recession since the end of communism. Trade is picking up after the credit crisis curbed investments and companies cut jobs. The Czech Republic, home to Skoda Auto AS and Hyundai Motor Co plants, gained from a pickup in demand in the euro area, its main trading partner, though risks remain if the recovery in the 16 nation bloc sputters.
Czech had its 16th consecutive trade surplus in April and industrial output rose to a 30 month high, driven by car production. Auto industry output grew 29% in the first quarter and sales abroad increased 23%. Data showed on June 8th 2010 that the unemployment rate dropped to a 6 month low in May.
Source: Bloomberg |
