INSTANT VIEW 2-Czech Q3 GDP grows 6 pct, slightly above forecast

...percent growth 
in the second quarter. 
    The Czech expansion lagged the boom in neighbouring 
Slovakia, which posted 9.4 percent growth in July-September, as 
well as 6.4 percent growth in northern neighbour Poland. 
    However, the Czech economy outpaced the region's laggard 
Hungary, which reported 0.9 percent growth. 
**************************************************************** 
KEY POINTS: 
(pct change)        Q3/07     Q2/07       Fcast Q3 
 year/year           6.0    6.3 (6.0)      5.8 
 NOTE. GDP up 1.4 percent quarter-on-quarter when adjusted for 
seasonal factors and the difference in working days. 
 
 CENTRAL BANK FORECAST: 5.9-6.3 percent GDP growth envisaged by 
its most recent projection unveiled in October. 
 
 (For full table of Q3 GDP data...................[nPRA001651]) 
 
- The third quarter marked the 10th consecutive quarter of GDP 
growth of 6 percent or more. 
- Growth is driven by a 5.6 percent rise household consumption, 
and a 5.7 percent increase in gross fixed capital formation -- 
or investments. 
- Consumers spend most food, tobacco, holidays, and cars, 
statistics office says. 
 
COMMENTARY: 
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "GDP growth is better than we had expected. As expected, the 
strong pace of economic growth is led by very strong consumption 
and investments. Consumption growth is strong, however not a 
concern, because consumption will cool off significantly at the 
start of next year due to a sharp increase in inflation. 
    "This is good news for the markets since it is showing the 
economy is doing better than expected. On the other hand, strong 
consumption will keep the CNB (central bank) vigilant and will 
revive talk of demand-pull inflation." 
 
MARKET REACTION: 
- Crown tad weaker at 26.150 per euro  by 0810 GMT from 
26.135 just before the data release. 
 
BACKGROUND: 
- For story on analysts' expectations before the data release, 
double click on                                [ID:nL28651725] 
- Slovak Q3 GDP                                [ID:nL30212952] 
- Poland's Q3 GDP                              [ID:nL30323616] 
- Hungary's Q3 GDP                             [ID:nBUD002267] 
 
LINKS: 
- For further details on third 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                       
 
 (Reporting by Marek Petrus) 
  
  Keywords: CZECH ECONOMY/GDP  
    

[PRAGUE/Reuters/Finance.cz]