Economy output in Q4 of 2008 better than expected

The Czech economy grew by one percent in the final quarter of 2008, the Czech Statistical Office reported on Friday. The growth was contrary to earlier predictions. Overall last year, the economy grew by 3.5 percent. Statisticians say that while the country was not fully hit by the worldwide economic downturn last year, it was affected by a falling global demand for products and services. Czech banks were also more cautious in providing loans.

The Czech central bank expects the GDP to sink by 0.3 percent this year, while the Finance Ministry optimistically predicts a 1.4 growth. Analysts believe however that the Czech economy will plunge into recession in 2009.

Author: Jan Richter