Economic policy / Macroeconomic Indicators, Economic Growth

This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.

Spotlight issue

3rd September 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Wage growth was optically raised by comparison base

The average gross monthly wage increase 11.3% in nominal terms in the second quarter, and 8.2% in real terms. It thus exceeded our and market expectations. Conversely, the central bank, which expected nominal wage growth of 12%, may be satisfied with its estimate. However, wage developments were significantly affected by last year's low comparison base. After seasonal adjustment, wage growth reached only 1.2% in a qoq comparison, which can certainly not be considered rapid dynamics. In addition, the payment of extraordinary rewards in healthcare largely contributed. The median wage in the second quarter was CZK32,408.kom  
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1st September 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Economy driven by consumption and investments; exports are the brake

According to a revised estimate, the Czech economy grew 1.0% qoq in 2Q21, after declining 0.4% in 1Q. A preliminary estimate showed growth of only 0.6%. In a year-on-year comparison, GDP grew at a rate of 8.2%, while the preliminary estimate showed 7.8%. Let us recall that the original expectations of economic development for the second quarter were significantly higher, the market consensus was around 2.0% quarter-on-quarter growth. So 1% growth is disappointing in light of the economy waking up after COVID-19 closures. However, given the level of uncertainty, such a surprise is understandable.
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26th August 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Industry is growing, but missing components are putting on the brakes

Industrial production increased month-on-month, although missing components led to a further decline in car production. The decline in exports and the growth of imports unexpectedly dragged the foreign trade balance into a deficit in June. The construction industry stagnated month-on-month, and its production thus remained in solid growth year-on-year.
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Members of the American Chamber of Commerce in the Czech Republic