Czech Economy Grows Faster Than Reported, Most Since 2007

  • Economy Expands 4.6 percent in second quarter from year ago
  • Quarterly growth 1.1 percent, higher than earlier estimate

The Czech economy grew faster than previously reported in the second quarter, expanding the most since 2007 in the midst of a loose monetary policy campaign by the central bank that limits gains in the nation’s currency.

Gross domestic product grew 4.6 percent from a year earlier in April-June, according to a revised reading from the Czech Statistical Office. The office previously estimated annual growth of 4.4 percent. The economy grew 1.1 percent from the previous quarter, up from an earlier estimate of 1 percent, the office said on Wednesday.

The growth was mainly driven by investment, which expanded 7.3 percent from a year earlier. Household consumption grew 3.1 percent, and government expenditure rose by 2.3 percent, the Statistical Office said.

The EU nation of 10.5 million is enjoying faster growth after the central bank pushed the koruna weaker by intervening in the market and setting a cap on its gains against the euro in 2013. Policy makers, who have pledged to keep the regime in place at least until the middle of next year, say the cap has helped avert deflation.

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