Daily economic news from the Czech Republic: overview of the past 24 hours (2.1.2025)

Tameh Czech - Liberty Ostrava (photo: libertysteelgroup.com)

Overview of the latest economic events in the Czech Republic

The insolvency proceedings at Liberty Ostrava have taken centre stage and the administrator has announced plans to sell the receivables of Tameh Czech. The move underlines the ongoing restructuring efforts within the country's industrial sector. The automotive industry, meanwhile, is facing an adverse environment as Volkswagen implements a rigorous cost-cutting program aimed at achieving profitability amid a transformational shift to electric vehicles.
Key discussions on energy security persist as the Czech Republic faces a halt in Russian gas supplies via Ukraine. Government efforts to secure alternative energy sources and expand renewable energy capacity are key to maintaining economic stability.
In conclusion, the Czech economy has the capacity to adapt, with its trajectory determined by solid market performance, strategic foreign investment and proactive responses to global challenges.

Analysis of today's trends on the Czech stock market

The Prague Stock Exchange ended the trading session at a 17-year high thanks to growth in the banking and energy sectors. The PX index recorded a 0.5% rise, supported by shares of Komerční banka and ČEZ. Despite the volatility of the global economy, the PSE showed resilience, reflecting investors' confidence in the stability of the Czech market.

Foreign investment trends: 24-hour overview

The Czech Republic continues to attract significant foreign investment. Reports highlight the entry of new solar energy projects financed by international investors, which is in line with the country's green energy transition goals. In addition, partnerships with global leaders in electromobility further strengthen the Czech Republic's strategic position in the European market.

Overview of the main macroeconomic indicators from the Czech Republic: December 2024

HDP Q3 1,3%
Latest GDP forecast by the Czech National Bank: (annual GDP change)
2024: 1.0 %
2025: 2.4 %
2026: 2.4 %
HDP: 342 990 000 000 USD
GDP per capita: 31 370 USD
GDP purchasing power parity: 619 000 000 000 USD
Average gross wage Q3 2024: 45 412 CZK (+7%)

Interest rate (December 2024): 4%
Inflation rate - consumer price index (annual) 2.8 %
Inflation rate - consumer price index (month-on-month) 0.1 %
Average annual inflation (2023): 10.7% (2022: 15.7%)
Industrial producer price index (annual) 1.7 %
Market services price index (annual) 3.7 %
Construction work price index (annual) 2.5 %
Agricultural producer price index (annual) 5.5 %
Money supply M3 (October 2024): 7 002 614 320 000 CZK
Money supply M3 (2002): CZK 1 339 928 850 000
(M3 reflects the total amount of money in circulation in the economy)

Deficit/surplus of public finances Q2 2024: -3 513 000 000 CZK
Consolidated public debt Q2 2024: CZK 3 320 004 000 000

Population 2024/9: 10 897 237
Total number of economic operators 2023: 2 800 294
Number of economic entities with identified activity 2023: 1 668 516
Number of natural persons in business 2023: 1 968 473

Sources:
Czech Statistical Office, official website accessed 1.1.2025, https://csu.gov.cz/
Czech National Bank, official website, accessed 30.12.2024, https://www.cnb.cz/
Czech National Bank - Monetary Policy Report - Autumn 2024 page 19, accessed 28.12.2024
International Monetary Fund, official website, accessed 30.12.2024, https://www.imf.org/

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