Revised GDP figures show Czech economy in better light
The Czech Statistics Office has released a revised series of gross domestic product figures for the years 2000-2002. The revision puts the Czech Republic's troubled public finances in a more favourable light. On the other hand, it implies additional costs of EU membership for the Czech Republic.
The office revised the statistics using new methodology intended to harmonise the Czech Republic's national accounts with those of the European Union. The scale of the revision is largely in line with those already carried out or being conducted by fellow EU candidate countries, like Slovenia and Slovakia.
The revision does not affect year-on-year GDP growth rates, but does influence those statistics that use GDP values as the basis for measurement, such as fiscal deficit calculations or state debt as a percentage of GDP.
The upward revision places Czech public finances in a better light and gives the cash-strapped government leeway in fulfilling its target of reducing the fiscal deficit below four percent of GDP by 2006.
The higher GDP, however, also implies that the Czech Republic will have to contribute more to European Union funds. National contributions to the common budget are calculated from the gross national product, which is derived from GDP.