Convenient stats

The Czech recession is over, according to a preliminary figure from the statistics bureau. So why isn't everyone rejoicing? Because the 0.3% quarter-to-quarter increase in economic output announced on Fri. doesn't jibe with what people see around them: Rising unemployment, companies shutting down and government finances spiraling out of control. Economist Miroslav Svoboda of VŠE told Czech Radio that he expects another dip in GDP, in part because state intervention into the car industry temporarily bolsters the GDP figure, while other unsubsidized segments aren't represented in the GDP calculation. He also said that the second-quarter GDP figure could be as much as 1.3 points worse once it is revised. But of course that figure won't be released until after the elections. In the meantime, the image of an economic recovery is a godsend for politicians making expensive campaign promises. [Czech Republic Statistical Office Vysoká škola ekonomická Prague School of Economics gross domestic product]