The development of GDP for the whole year was negatively affected by expenditure on household final consumption and the change in stock levels. On the contrary, the final consumption of government institutions, expenditure on the formation of gross fixed capital and foreign demand had a positive effect.
The development of GDP in the last quarter of last year had a positive effect on foreign demand and the growth of household consumption expenditure. “The opposite was the case with capital formation, where although investments in fixed capital increased, the level of inventories fell significantly,” said Vladimír Kermiet, director of the National Accounts Department of the CZSO.
Gross value added (GVA), i.e. the result of the difference between the production of goods and services and the cost of production, increased by 0.5 percent last year compared to 2022. According to statistics, this was mainly helped by developments in the manufacturing industry and information and communication activities.
Creditas Bank’s Chief Economist Petr Dufek reminded that the Czech economy is still the only one in the European Union that has not reached the pre-pandemic level, “mainly as a result of persistently high inflation degrading household incomes and savings”.
According to him, the economy was mainly helped by increased household consumption and exports. “In real terms, households bought more short- and medium-term consumption goods, spent more on services, but have not yet bought cars and other long-term goods. Overall, however, the consumption of Czech households lagged behind 2019 by more than eight percent,” added Dufek.
Even this year, he does not expect the economy to catch up to 2019. He cited negative signals in industry and the dying German economy, which is on the verge of recession and which is the main trading partner of the Czech Republic, as the main reasons.
The German economy fell into recession last year, statistics confirmed
2024-03-01 08:08:45
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