KB prezent. angl - Komerční banka

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Macroeconomic Development
Macroeconomic
Development
Czech Economy in 2003
In the course of 2003, Czech economic growth accelerated. GDP grew by 2.9%. The main driver of this acceleration was
massive household consumption accompanied by a revival in fixed capital formation, observable as of the second quarter of
2003. Consumer demand increased by 5.4%, while investment demand grew by 3.7%. The gradual narrowing of the gap
between consumer and investment demand was one of the major achievements of 2003, supporting the long-term
sustainability of Czech economic growth.
Low inflation, and the rapid growth of real incomes combined with all types of consumer loans, were the main factors behind
the strong consumer demand and acceleration in retail trade. The growth in retail sales amounted to 5%. Industry continued
its solid growth without any significant fluctuations, the industrial output increasing by 5.8% in 2003. After stagnation in the
first half of the year, construction reported double digit growth rates of output from June 2003, and the full-year growth of
construction output amounted to 8.9%. The boom in construction was mainly supported by an expected increase in VAT
(effective as of January 2004), which speeded up large business and infrastructure projects. Also, the rapid growth in
housing, driven by easier access to mortgages and housing loans, was behind the fast increase of output in construction.