Current economic situation in the Czech Republic
— Press release —
The current economic situation in the Czech Republic in 2023 is not entirely negative, but it cannot be considered highly optimistic. According to the Economic Survey 2023, companies in the Czech Republic have differing opinions on the business outlook. Around 19 percent of companies expect an improvement in the economic situation, while 38 percent believe it may worsen.
The Czech Ministry of Finance forecasts a minimal GDP increase of only 0.1 percent. It is not expected that GDP growth will reach 3.0 percent until 2024. The country's Finance Minister, Zbyněk Stanjur, points out that foreign trade is a significant factor in the country's economic prospects. German-Czech trade, in particular, has played a vital role in this regard. In the previous year, it reached a record high of 113 billion euros and is expected to continue driving Czech foreign trade in 2023. Additionally, the inflation rate is projected to be 2.4 percent next year, which should help stabilize the financial situation of Czech households.
The Czech Republic anticipates several challenges, including rising energy and labor costs, as well as an ongoing shortage of skilled workers. To address these issues and support economic recovery, investments in renewable energies and electric mobility are being encouraged. By reducing dependence on the gas and oil market, these investments aim to enhance energy sustainability. Moreover, there is a need to increase incentives for improving energy efficiency, particularly in the residential sector, which would reduce reliance on coal as an energy source.
(Source: AHK Tschechien)