7th May 2024

Czech Statistical Office: The Czech Economy Development (H2 2023)

Czech Statistical Office published an overview of the economic trends in Czechia in the second half of 2023.

The Gross domestic product (GDP) decreased by 0.4%  in year 2023. The household consumption was falling, and the change in inventories exerted a negative effect. The foreign demand, investment and government consumption on the contrary contributed to the GDP growth. The GDP fell by 0.2% year-on-year in Q4, mainly as a result of the negative effect of the inventory stock, which outweighed the other GDP components. The GDP went up by 0.2% quarter-on-quarter. Development of household consumption, investment as well as foreign demand contributed. Consumption of general government and the change in inventories prevented a larger GDP revival. The Gross domestic product grew by 0.2% year-on-year in the EU in Q4 and it stagnated quarter-on-quarter. The economies stagnated quarter-on-quarter in the whole central European region. 


The Gross value added (GVA) grew by 0.5% last year. Development in manufacturing and information and communication were contributing the most. On the other hand, the GVA in group of economic activities of trade, transport, accommodation, and food service activities and in construction dropped. In Q4 itself, the GVA increased by 0.3% year-on-year. Manufacturing and information and communication activities had a favourable effect again. The total year-on-year GVA growth was hampered the most by the group of economic activities of trade, transport, accommodation, and food service activities. Following the two preceding decreases the Gross value added rose by 0.6% quarter-on-quarter in Q4. The revival was strong in manufacturing, but the GVA slumped in construction, other activities and in financial and insurance activities. 


Exports of goods and services increased in real terms by 3.1%  year-on-year in year 2023 and imports decreased by 0.4%. In Q4 itself, the exports grew by 1.0% year-on-year and by 2.2% quarter-on-quarter. Imports in contrast fell by 4.7% year-on-year and by 2.4% quarter-on-quarter. The balance of international trade with goods and services reached in total in current prices the surplus of 378.0 CZK bn last year and it expanded by 312.4 bn year-on-year. Moderation of the deficit of the crude petroleum and natural gas trade and improvement of the trade surplus in motor vehicles mainly contributed to the improvement of the trade balance of goods. The trade balance of electricity, gas, steam and air conditioning on the contrary deteriorated.  


Total price level (gauged by the GDP deflator) increased by 8.6% last year. It rose by 6.0% year-on-year in Q4 and stagnated quarter-on-quarter. Consumer prices jumped up by 10.7% last year. Their year-on-year growth gradually slowed down during the year and the consumer prices increased by 7.6% in Q4. Quarter-on-quarter they fell by 0.4%. Year-on-year pace of prices of the majority of consumer basket divisions weakened their growth apart from housing and energies. Prices of industrial producers, construction work and service producer prices in the business sphere also grew slower in Q4. Agricultural producer prices remained in deep decline.  


The monetary policy-relevant interest rates were lowered at the end of the year. The anticipated decrease was apparent on the interbank offered interest rates with longer maturity already during autumn, short-term rates responded only in December. Interest rates on term deposits as well as credit for households and corporations went down.  


Total employment  increased by 0.8% last year. In Q4 itself, it was by 0.4% higher year-on-year, while quarter-on-quarter it decreased by 0.1%. Mild growth trend of the general unemployment rate was evident during the year, the rate thus arriving at 3.0% in January. The average gross monthly nominal wage grew by 6.3% year-on-year in Q4 and reached 46 013 CZK. The real average wage dropped by 1.2%. Quarter-on-quarter nominal rise of the average wage was 1.5%.


State budget deficit for year 2023 amounted to 288.5 CZK bn. The deficit shrank year-on-year for the second time in a row and decreased by 71.9 CZK bn compared to year 2022. Total revenues rose by even 23% year-on-year and slightly exceeded the budget anticipations. Both tax income without insurance and non-tax and capital income as well as received transfers contributed to the growth. Total expenditures thus increased by 12.4% year-on-year since the beginning of the year. Their growth reflected the state aid associated with high prices of energies as well as the impacts of the slowly subsiding high inflation. 


See full publication and an archive of previous reports here (in English). 


Read also international comparisons in selected areas (2023), Czechia in figures (2023), comparison of Czech regions (2023). 


Source: Czech Statistical Office

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