The growth structure was not released today. Comments by the Czech Statistical Office suggest that GDP dynamics were mainly supported by domestic demand. Consumption increased along with wage growth and a still-rosy economic outlook. Investment supported the economy in the previous quarters and contributed positively in the second quarter, but from the statistical office’s report we assume the contribution is not as strong as before. This is corroborated by the fact that external trade has surprisingly acted positively, which suggests slower imports.

The domestic economy is set to accelerate during the remainder of the year. It should be supported by a revival in the euro area led by Germany. We continue to expect positive contributions from household consumption. Investment should maintain sound growth as entrepreneurs will try to increase productivity under pressure to find a suitable labour force. Overall, we expect GDP growth to print 3.0% this year.