map Czechia
At the start of 2023, the Czech economy continues to face strong pressure from high borrowing costs and double-digit inflation, though a slowdown in price growth appears to be around the corner. The deterioration in real wages is taking its toll on household consumption; this, combined with gross fixed capital formation, will act as the main drag on growth in 2023. By contrast, industry is coping better than expected with the headwinds: the automotive sector is particularly strong and is contributing positively to Czechia’s exports. Still, many of the challenges from 2022 will carry over into the first half of this year; consequently, the Czech economy is expected to report close to no growth (0.4%) in 2023, followed by a modest rebound (2.4%) in 2024. In the wake of pressure from firms struggling with soaring energy prices, the government has extended its support package to cover large enterprises (alongside SMEs and households); this will limit the scope for fiscal consolidation. Inflation will return to the Czech National Bank’s target range only in 2024. The policy rate will most likely remain stable at 7% over the coming months, before gradually decreasing towards the end of the year.
Main Economic Indicators202020212022202320242025
Population, 1000 persons106981050610525...
GDP, real change in %-
GDP per capita (EUR at PPP)2805029710....
Gross industrial production, real change in %-
Unemployment rate - LFS, in %, average2.
Average gross monthly wages, EUR136714781643...
Consumer prices, % p.a.3.33.314.
Fiscal balance in % of GDP-5.8-5.1-3.9-4.0-2.5-1.9
Public debt in % of GDP37.742.045.0...
Current account in % of GDP2.0-0.9-5.6-3.8-2.6-0.9
FDI inflow, EUR m736764919375...
Gross external debt in % of GDP76.376.366.9...

Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
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Monthly Report No. 2/2023

Tereza De Castro, Branimir Jovanović, Michael Landesmann, Sebastian Leitner, Cristina Procházková Ilinitchi, Ondřej Sankot and Jana Vlčková
wiiw Monthly Report No. 2, February 2023
53 pages including 2 Tables and 28 Figures



Executive summary

Branimir Jovanović
in: Bracing for the Winter
wiiw Forecast Report No. Autumn 2022, October 2022 , pp. I-VIII