5/1/2024, Updated 1 hour ago|Source: ČTK, ČT24
In the third quarter of last year, the domestic economy fell by 0.8 percent year-on-year. Compared to the previous quarter, the gross domestic product (GDP) was lower by 0.6 percent. This follows from the updated data published by the Czech Statistical Office (CZSO). Statisticians thereby worsened their initial estimate from the beginning of December, which counted on a year-on-year drop of 0.7 percent and a quarter-on-quarter drop of 0.5 percent.
Real consumption per inhabitant fell by 5.2 percent year-on-year. Statisticians point out, however, that if this balance did not include people who were granted temporary protection due to Russian aggression in Ukraine, then real consumption per inhabitant would fall by 2.4 percent. It was 0.3 percent lower quarter-on-quarter.
“The sum of real monetary and non-monetary income of households per inhabitant in the third quarter rose by 0.9 percent quarter-on-quarter, and decreased by 3.7 percent year-on-year,” informed Vladimír Kermiet, director of the National Accounts Department of the CZSO.
The average monthly income from employment was CZK 43,371 in the third quarter of last year. Compared to the previous quarter, it increased by half a percent in real terms, it did not change year-on-year. Household investments fell by 0.1 percentage point quarter-on-quarter and amounted to 7.4 percent, year-on-year they were lower by 0.4 percentage point.
For non-financial corporations, the profit rate was 48.5 percent in the third quarter, which is 0.2 percentage points lower than in the previous quarter and 0.3 percentage points higher than a year earlier. The total wage costs of non-financial enterprises rose by 7.1 percent year-on-year. The investment rate increased quarter-on-quarter by 0.4 percentage points and reached 28.9 percent. Year-on-year, it was higher by 0.3 percentage points.
According to Generali Investments CEE Chief Economist Radomír Jáč, the updated data from the CZSO are a little disappointing, similar to the originally reported numbers. He stated it on the broadcast of ČT24. According to him, household consumption fell even more significantly than expected, although inflation is falling – this should have a positive effect on household consumption. It is said that people perceive uncertainty subjectively and remain in a mode where they worry about the outlook of their situation.
“For the first time since the end of 2021, the rate of corporate profit fell slightly quarter-on-quarter. This shows that the ability of companies to raise prices comes up against weak demand in the Czech economy,” added the economist.
Economist Jáč spoke about the development of the economy in the Czech Republic (source: ČT24)
The debt rose to 3.214 trillion
Statisticians also report that the debt of government institutions in the third quarter of last year rose by 230.8 billion crowns year-on-year to CZK 3.214 trillion. Their debt ratio fell from 45.2 percent of GDP to 44.5 percent. In a quarter-on-quarter comparison, the debt was CZK 63.4 billion higher and the debt ratio increased by two-tenths of a percentage point.
In the third quarter, government institutions managed a deficit of CZK 38.8 billion, i.e. CZK 17.3 billion lower than a year earlier. “Year-on-year, on the income side, received taxes from pensions grew the most, and on the expenditure side, social benefits paid out,” said Helena Houžvičková, director of the Department of Government and Financial Accounts of the CZSO.
At the same time, statisticians pointed out that the quarter-on-quarter increase in the debt of government institutions differed significantly from the economic result. Government institutions borrowed 24.6 billion more than their economic result, which was reflected in the increase in the value of held assets, especially deposits, the CZSO stated.
The finances of central government institutions remained in deficit during the monitored period, amounting to CZK 51.9 billion, but decreased by CZK 16.1 billion year-on-year. The budget surplus of local government institutions improved year-on-year by CZK 3.8 billion to CZK 11 billion, and social security funds ended up with a surplus of CZK 2.1 billion, the CZSO reported.
The total revenues of government institutions in the third quarter of last year rose by 9.1 percent year-on-year, reaching 41.1 percent of GDP. The increase in income was positively influenced by received pension taxes and received social contributions. Expenditure by government institutions was 6.2 percent higher year-on-year, reaching 43.2 percent of GDP. According to statisticians, spending on social benefits and compensation for employees rose the most.
2024-01-05 10:41:58
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