Household consumption and external demand drove the economy in 2Q19.
GDP growth figures from the second quarter of this year were down on the first quarter but showed that growth was still being supported in Central and Eastern Europe by domestic demand that has gone some way to offsetting an EU slowdown.
The Czech inflation was up by 0.2 percentage points (pp) month-on-month in July to a 2.9% taking it back to its May level after a slowdown in June, data from the Czech Statistics Office (CSO) published on August 12 showed.
Industrial output fell by 6.4% y/y in June after over 3% growth in previous months. Though subject to calendar effects and other one-off factors, the weaker result also underlines that Czech industry is not immune to the German industrial slowdown.
The core message for bankers and investors active in the CEE region should be: close to old records, potential for more but watch out for late cycle phenomena.