Czech Economy Unexpectedly Shrinks as Central Bank Weighs Cuts
- GDP drops 0.3% in third quarter; forecast was for stagnation
- Weak demand likely to fuel arguments for interest-rate cuts
This article is for subscribers only.
The Czech economy unexpectedly contracted in the third quarter on weak demand, fueling arguments for the central bank to begin lowering borrowing costs at a close-call meeting on Thursday.
Gross domestic product slid 0.3% from the previous three month, defying a forecast for flat growth after stagnating in the previous quarter, according to preliminary data from the Czech Statistics Office on Tuesday. The economy shrank 0.6% from a year earlier.