INSTANT VIEW 2-Czech Q4 GDP growth of 5.8 pct beats mkt fcast

    PRAGUE, March 9 (Reuters) - Czech economic growth slowed 
marginally to 5.8 percent in the fourth quarter from a revised 
5.9 percent rise in the previous three months, but still beat 
the market forecast of a sharper slowdown. 
    The Czech expansion lagged the boom in the neighbouring 
Slovakia, which posted 9.6 percent growth in October-December, 
as well as 6.4 percent growth in northern neighbour Poland. 
    But the Czech economy still outpaced Hungary, which reported 
3.2 percent growth. 
 
KEY POINTS: 
(pct change)        Q4/06     Q3/06       Fcast Q4 
 year/year           5.8    5.9 (5.8)      5.2 
 
 (For full table of Q4 GDP data...................[nPRA001189]) 
 
- Growth is driven by a 7.6 percent gain in fixed investment 
creation, a 5.4 percent in reviving household consumption, as 
well as a build-up of inventories. 
- Government spending at 2.6 percent. 
- Exports up 17.4 percent, imports up 18.1 percent year-on-year 
in real prices. 
 
COMMENTARY: 
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "The number confirms we are behind the peak and find 
ourselves in the phase of growth stabilisation around 5 percent. 
    "We are about 0.5 percentage points above potential. I would 
expect the central bank to gradually raise interest rates 
towards 3 percent at the end of the year." 
 
MARKET REACTION: 
- Crown flat at 28.140 per euro . 
 
BACKGROUND: 
- For story on analysts' expectations before the data release, 
double click on                                [ID:nL0578676] 
- Slovak Q4 GDP                                [ID:nL0665158] 
- Poland's Q4 GDP                             [ID:nL01611145] 
- Hungary's Q4 GDP                            [ID:nL09185608] 
 
LINKS: 
- For further details on fourth quarter GDP and past data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-hdp 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH GDP/