The Czech economy slumped into recession, shrinking in the last two quarters of 2011, according to revised official data.

The economy slid by a revised 0.1 per cent in the last quarter of 2011 against the previous quarter, after contracting at the same pace between the second and third quarter, the Czech Statistical Office said.

In full-year 2011, the economy of 10.5 million people heavily dependent on car production grew by 1.7 per cent, pulled by the manufacturing industry and foreign trade, statisticians added.

On a 12-month basis, the economy grew by a revised 0.6 per cent in the last quarter of 2011, slowing down from 1.2 per cent growth in the previous quarter.

The full-year growth was in line with a forecast by the Czech central bank, which predicts zero growth for this year because of low foreign demand caused by the eurozone crisis.

Next year, the central bank expects the economy to grow by 1.9 per cent on a revival in foreign demand.

In 2010, the Czech economy grew by 2.7 per cent following a 4.7 per cent contraction in 2009 caused by the global financial crisis.

The Czech Republic is yet to adopt the euro under its 2004 EU entry terms, but its centre-right government has made it clear that the country would not join the troubled 17-member currency zone during its term, which ends in 2014.