Skyline of Prague, Czech Republic

Czech Republic Economic Forecast

Czech Republic Economic Outlook

A revised estimate revealed that the economy contracted year on year in Q1, swinging from Q4’s timid increase, while it flatlined on a seasonally adjusted quarter-on-quarter basis. The annual decline was due to a sharper contraction in household spending and a downturn in fixed investment amid poor consumer confidence and elevated inflation and interest rates. April’s and May’s downbeat economic sentiment and contractionary PMI readings in the same two months point to further weakness in Q2. Meanwhile, in mid-April, the government unveiled an austerity plan designed to reduce the country’s sizable budget deficit and reform the financially-unsustainable retirement system. The plan includes measures such as hikes in taxes on alcohol, tobacco, and high-income earners; cuts to social welfare programs and public sector workers’ salaries; and an increase in the retirement age.

Czech Republic Inflation

Inflation fell to 12.7% in April from 15.0% in March due to slower increases in prices for food and non-alcoholic beverages, restaurants and hotels and housing and utilities. Therefore, inflation moved closer to the Central Bank’s 1.0–3.0% target range. Price pressures should continue easing this year, although protracted pass-through effects will keep them above target.

This chart displays Economic Growth (GDP, annual variation in %) for Czech Republic from 2013 to 2022.

Czech Republic Economic Data

2017 2018 2019 2020 2021
Population (million) 10.6 10.6 10.7 10.7 10.7
GDP (USD bn) 219 249 253 246 282
GDP per capita (USD) 20,673 23,453 23,711 22,999 26,320
GDP (EUR bn) 194 211 226 216 238
GDP per capita (EUR) 18,334 19,878 21,184 20,174 22,265
GDP (CZK bn) 5,111 5,411 5,791 5,709 6,109
Economic Growth (Nominal GDP, ann. var. %) 6.5 5.9 7.0 -1.4 7.0
Economic Growth (GDP, ann. var. %) 5.3 3.2 3.0 -5.5 3.5
Domestic Demand (ann. var. %) 4.3 4.9 3.2 -5.4 8.4
Private Consumption (ann. var. %) 4.0 3.3 2.6 -7.4 4.1
Government Consumption (ann. var. %) 1.8 3.9 2.5 4.2 1.4
Fixed Investment (ann. var. %) 5.1 10.0 5.9 -6.0 0.8
Exports (G&S, ann. var. %) 7.6 3.7 1.3 -8.1 6.8
Imports (G&S, ann. var. %) 6.5 5.8 1.5 -8.2 13.2
Industrial Production (ann. var. %) 6.7 3.0 -0.3 -7.2 6.6
Retail Sales (ann. var. %) 5.5 4.9 4.8 -0.7 4.3
Disposable Income (ann. var. %) 4.4 3.7 3.3 2.2 3.1
Wages (ann. var. %) 6.7 8.2 7.9 4.6 5.8
Unemployment (% of active population, aop) 2.9 2.3 2.0 2.6 2.8
Fiscal Balance (% of GDP) 1.5 0.9 0.3 -5.8 -5.1
Public Debt (% of GDP) 34.2 32.1 30.0 37.7 42.0
Money (ann. var. of M2 %) 8.6 5.6 7.0 10.7 7.0
Inflation (CPI, ann. var. %, eop) 2.4 2.0 3.2 2.3 6.6
Inflation (CPI, ann. var. %, aop) 2.5 2.1 2.8 3.2 3.8
Inflation (HICP, ann. var. %, aop) 2.4 2.0 2.6 3.3 3.3
Inflation (PPI, ann. var. %, aop) 1.8 2.0 2.6 0.1 7.1
2-Week Repo Rate (%, eop) 0.50 1.75 2.00 0.25 3.75
3-Month PRIBOR (%, eop) 0.76 2.01 2.18 0.36 4.08
10-Year Bond Yield (%, eop) 1.72 1.85 1.63 1.28 2.73
Stock Market (ann. var. of PX-50 %) 17.0 -8.5 13.1 -7.9 38.8
Exchange Rate (CZK per USD, eop) 21.3 22.5 22.6 21.5 21.9
Exchange Rate (CZK per USD, aop) 23.37 21.74 22.93 23.21 21.69
Exchange Rate (CZK per EUR, eop) 25.5 25.7 25.4 26.3 24.8
Exchange Rate (CZK per EUR, aop) 26.35 25.66 25.67 26.46 25.64
Current Account Balance (EUR bn) 3.0 0.9 0.7 4.3 -6.6
Current Account Balance (% of GDP) 1.5 0.4 0.3 2.0 -2.8
Merchandise Trade Balance (EUR bn) 9.8 7.8 9.3 10.6 2.7
Merchandise Exports (EUR bn) 129 136 139 128 149
Merchandise Imports (EUR bn) 119 128 130 117 146
Merchandise Exports (ann. var. %) 9.1 5.6 2.3 -8.2 16.0
Merchandise Imports (ann. var. %) 9.6 7.7 1.2 -9.7 24.2
Foreign Direct Investment (EUR bn) 7.9 9.6 9.0 7.7 5.1
International Reserves (EUR bn) 123.2 124.7 133.5 135.8 152.7
International Reserves (months of imports) 12.4 11.6 12.3 13.9 12.6
External Debt (EUR bn) 171 171 173 165 182
External Debt (% of GDP) 88.3 81.3 76.5 76.3 76.3

Free Sample Report

Interested in Czech Republic economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest