Year-on-year in the fourth quarter of 2023, the economy grew by 0.2 percent, while initially statisticians indicated a decrease of 0.2 percent. Quarter-on-quarter gross domestic product (GDP) also rose by as much as 0.4 percent, while the previous estimate was for growth of 0.2 percent.
The revised estimates are due to the inclusion of new data for government institutions, the CZSO explained.
“Nothing fundamental changes. The Czech economy hovered around zero all last year, or practically stagnated. However, the updated result is a very pleasant end to a year when we were constantly in the red,” commented Citfin analyst Tomáš Volf on the data.
“We ended 2023 with moderate growth (0.2% YoY GDP growth in Q4), which is positive and suggests that we’re likely to enter this year similarly,” Volf added.
The sum of monetary and non-monetary income of households fell by 2.5 percent in real terms last year, and real consumption per inhabitant decreased by five percent year-on-year. “The savings rate rose by 2.2 percentage points to 18.6 percent by 2022,” the CZSO said.
Profits belonging to foreign owners of corporations reached 5.6 percent of GDP last year. “In the form of dividends, the foreign owners distributed almost 290 billion CZK and almost 120 billion CZK was reinvested. This development reflects the high profitability of foreign direct investments in the Czech Republic,” said Vladimír Kermiet, director of the National Accounts Department of the CZSO.
Gross national income grew by 3.6 percent in real terms last year. Gross disposable income for the entire economy rose by 3.8 percent.
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