Prague - The export-driven Czech economy contracted by an historic 5.5 per cent in the second quarter of 2009, compared to the same period a year ago, because of falling foreign demand, government data showed Tuesday.

But the economy's plunge came to a halt in the April-June period, the Czech Statistics Office said. The country's gross domestic product (GDP) grew by 0.1 per cent quarter on quarter as manufacturing and construction picked up.

In the first quarter, GDP contracted by 4.8 per cent quarter on quarter, a steep downward revision from the 3.4 per cent published in June.

The Statistics Office also revised downward the first-quarter year-on-year drop to 4.5 percent from 3.4 per cent.

The global financial meltdown has bypassed the Czech Republic, but the country's economy has suffered amid falling demand from its foreign markets, mainly Western Europe.

As a result, unemployment continued to rise in August, according to data released Tuesday by the Ministry of Labour and Social Affairs.

The jobless rate, based on a number of job seekers registered with labour authorities, increased to 8.5 per cent in August, up from 8.4 per cent the previous month, the ministry said. (dpa)