Stocks in the region rose with the Budapest bourse leading the pack with its main index up by 1.4 percent.

OTP Bank added 1.8 percent after a target price hike by HSBC, drug maker Gideon Richter was up 2.1 percent as it continued a recovery from a recent 15-percent fall it suffered after an EU health agency imposed temporary restrictions on its Esmya medicine.

"OTP is a resilient stock that weathers negative turns well and makes the most of positive ones," a local trader said.

The Czech Statistical Bureau said the economy grew by 0.5 percent in the fourth quarter compared with the previous three months, putting year-on-year growth at 5.1 percent.

The data - coupled with other indicators pointing to continued fast expansion and wage growth this year - reaffirmed expectations the central bank would need to continue tightening its policy after three rate between August and this month, albeit at a slower pace.

All sectors contributed to the expansion highlighting foreign demand and domestic household consumption as key factors. For the full year, the domestic economy grew at its second fastest pace since 2008.

"Today's GDP estimate confirms that the economic development remains positive and that this should continue," said Jakub Seidler, ING chief economist in a note to clients.

The crown was a touch higher at 25.35 to the euro, 0.1 percent up.

Telecoms firm O2 Czech Republic was the biggest gainer on the Prague Stock Exchange, up 1.3 percent, after the board said late on Thursday it would propose 21 crown payout per share, including a 17 crown dividend and 4 crown share premium.

The payment is the same as last year but some investors had been uncertain as the proposal came later than last year, when it was published with fourth-quarter results.

A 1.5 percent drop for broadcaster CME held the PX index gains to 0.33 percent.

In Poland, the zloty was up 0.1 percent.

Wages in Polish corporate sector grew by 7.3 percent year-on-year in January, beating market expectations.