Czech Republic Economic Recovery Continues
News Posted On: 10 June 2010
The Czech Republic economy continued its strong recovery in the first quarter according to the latest data from Eurostat. The figures show that Czech Republic gross domestic product (GDP) grew by the EU average of 0.2% in the first quarter, following a growth of 0.7% in the final quarter of last year, and 0.6% the quarter before.
This run of growth in Czech Republic GDP has led to the emerging market becoming one of the few countries in the EU to be back in positive growth territory on an annual basis; according to the figures Czech Republic GDP in the first quarter was 1.2% higher than a year ago.
According to analysts the Czech Republic's growth is down to export growth, and the fact that domestic demand has picked up sufficiently, not to drive growth but to reduce its detraction enough to allow growth. However, analysts also believe that exports could die down again as the Euro area economy is continually forced to tighten its fiscal belt.
Why does it appear that no one saw this coming? All these interest rate cuts and stimulatory measures will prove to have been pointless if the cut-backs needed to pay for them end up sending us into a second recession.
Digression over: the Eurozone is not the only importer of Czech goods, it can be hoped that exports to Asia and Latin America will expand fast enough to make any contraction in Eurozone demand less noticeable. Time will tell.
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