The Czech economy emerged from recession by growing 0.3 per cent in the second quarter, official data has shown, as the crucial auto industry picked up with increased sales in export markets.

The economy however still shrank a record 4.9 per cent on a 12-month comparison, underlining the depth of the crisis for this industrial hub.

In the first quarter, the Czech economy had shrunk by shrunk by 3.4 per cent on both quarterly and yearly bases.

Coming on the back of a 0.9-per cent decline in the final three months of 2008 that performance threw the country into recession which is widely understood to be two quarters or more of contracting output.

Friday's data was in line with analyst forecasts.

"We'd already hit the bottom in the first quarter of this year," said Helena Horska, an analyst at Austria-based lender Raiffeisenbank.

"It's possible that the Czech economy has already bounced back, thanks to the 'cash-for-clunkers' programmes in neighbouring countries which helped put the brakes on the fall in exports," she added.

The national statistical office is due to publish its final second-quarter data on September 8.

Petr Dufek, an analyst at the Czech bank CSOB, warned against an early surge in optimism.

"Those figures will be more precise, and it's only in September that their detailed structure will be published. So it's still too early to talk about a solid rebound in the economy," he said.

Last week, the Czech Central Bank forecast that the country would face a steeper full-year slump and a slower recovery than previously forecast.

The bank said it expected the ex-communist economy to shrink by 3.8 per cent this year, after predicting a 2.4-per cent contraction in May. It also forecast 0.7 per cent growth in 2010 - half its previous estimate of 1.4 per cent.

In 2008, the ex-communist economy had expanded by 3.1 per cent, after record growth of 6.6 per cent the previous year.