INSTANT VIEW 3-Czech Q3 GDP growth slows to 5.8 pct y/y

    PRAGUE, Dec 8 (Reuters) - Czech economic growth slowed to 
5.8 percent in the third quarter from a revised 6.0 percent rise 
in the previous three months, but still beat the market forecast 
of a sharper slowdown thanks to investments and private 
spending. 
    The Czech expansion lagged the boom in the neighbouring 
Slovakia, which posted 9.8 percent growth in July-September and 
took over from the Czech Republic as the fastest growing economy 
in post-Communist central Europe. 
    But the Czech economy still ran neck-and-neck with Poland 
and outpaced Hungary, which reported 3.8 percent growth on 
Friday. 
 
KEY POINTS: 
(pct change)        Q3/06     Q2/06       Fcast Q3 
 year/year           5.8    6.0 (6.2)      5.2 
 
 (For full table of Q2 GDP data...................[nPRA001071]) 
 
- Growth is driven by gross capital formation, including a 7.2 
percent gain in fixed investment and a build-up of inventories. 
- Household consumption revives, rising 4.0 percent. 
- Government spending falls 2.6 percent. 
- Exports up 11.4 percent, imports up 10.6 percent year-on-year 
in real prices. 
 
COMMENTARY: 
    DAVID MAREK, CHIEF ECONOMIST, PATRIA FINANCE, PRAGUE 
    "The pace of growth fulfilled our expectations and shows the 
Czech economy in a very favourable light. The structure of GDP 
also did not bring any noteworthy surprises. 
    "At the centre of the growth lies household consumption. 
Investment also held its high growth rate. 
    "The slightly favourable character of the data, together 
with the expected November inflation and unemployment data, will 
not cause the crown or bonds to move." 
     
    PETR DUFEK, ANALYST, CSOB, PRAGUE 
    "Household consumption is accelerating, but foreign trade is 
contributing as well to the growth. The number is not surprising 
and the revision of previous figures of GDP growth is only 
cosmetic. 
    "Positive trends are continuing, we only have to count on 
GDP growth slowly falling. Generally, it's a good number for the 
crown, but the currency will rather look abroad than at 'old' 
GDP data." 
 
MARKET REACTION: 
    Crown currency at 27.950 to the euro <EURCZK=> from 27.99 
ahead of the data. 
 
BACKGROUND: 
- For story on analysts' expectations before the data release, 
double click on [ID:nL30680319] 
- Slovak Q3 GDP                                [ID:nL0737610] 
- Poland's Q3 GDP                             [ID:nL30723924] 
- Hungary's Q3 GDP                            [ID:nBUD001815] 
 
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       <ECONCZ> 
- 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                <CZKVIEW> 
- Czech money guide                                      <CZK/1> 
- Czech benchmark state bond prices                   <0#CZBMK=> 
- Czech forward money market rates                      <CZKFRA> 
 
 ((Writing by Jan Lopatka; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
jan.lopatka.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/GDP