Czechia
| FORECAST* | ||||||
|---|---|---|---|---|---|---|
| Main Economic Indicators | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Population, 1000 persons | 10698 | 10506 | 10672 | . | . | . |
| GDP, real change in % | -5.5 | 3.6 | 2.4 | 0.2 | 2.4 | 2.7 |
| GDP per capita (EUR at PPP) | 28050 | 29710 | 31950 | . | . | . |
| Gross industrial production, real change in % | -7.2 | 6.9 | 2.5 | . | . | . |
| Unemployment rate - LFS, in %, average | 2.6 | 2.8 | 2.2 | 2.7 | 2.6 | 2.6 |
| Average gross monthly wages, EUR | 1367 | 1478 | 1641 | . | . | . |
| Consumer prices, % p.a. | 3.3 | 3.3 | 14.8 | 11.0 | 3.5 | 2.8 |
| Fiscal balance in % of GDP | -5.8 | -5.1 | -3.7 | -4.2 | -2.3 | -1.5 |
| Public debt in % of GDP | 37.7 | 42.0 | 44.2 | . | . | . |
| Current account in % of GDP | 2.0 | -2.8 | -6.1 | -2.8 | -1.7 | -0.5 |
| FDI inflow, EUR m | 7367 | 10953 | 10045 | . | . | . |
| Gross external debt in % of GDP | 76.3 | 76.3 | 66.9 | . | . | . |
Basic data are continuously updated.
* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.
publication_icon
Monthly Report No. 7-8/2023
Vasily Astrov, Alexandra Bykova, Rumen Dobrinsky, Selena Duraković, Meryem Gökten, Richard Grieveson, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Niko Korpar, Sebastian Leitner, Isilda Mara, Olga Pindyuk, Sandor Richter, Bernd Christoph Ströhm, Maryna Tverdostup, Nina Vujanović, Zuzana Zavarská and Adam Żurawski
wiiw Monthly Report No. 7-8, July-August 2023
51 pages including 3 Tables, 24 Figures and 1 Box
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Executive summary
Olga Pindyuk
in: Sailing Through Rough Waters
wiiw Forecast Report No. Spring 2023, April 2023 , pp. I-VI
Details
Against the previous quarter, the Czech economy in Q1 remained static, while year on year it contracted slightly (-0.4%). Household consumption and inventories hampered growth, and investment was anaemic; meanwhile net exports and government consumption contributed positively. Industry has so far proved resilient, driven as it is by export-oriented automotive and electronics production. Yet, with new orders declining and the Purchasing Managers’ Index dipping in April, a loss of momentum is to be expected. Certain services (hospitality, transport, IT) have proved exceptionally strong, as if shielded from the weak demand that has constrained other sectors. Inflation was well above 10% in the first five months of the year and, despite signs of moderation, it appears inevitable that the Harmonised Index of Consumer Prices will remain in double figures in 2023 (11%). There is starting to be talk of monetary easing, probably some time towards the year end. On the fiscal side, the government is negotiating pension and tax reforms to tackle the deterioration in public finances. Overall, it is expected that the inflationary environment will result in sluggish growth in 2023 (0.2%), to be followed by a gradual recovery in 2024 and 2025 (2.4% and 2.7%, respectively).