Daily economic news from the Czech Republic: overview of the past 24 hours (10.1.2025)

Overview of the latest economic events in the Czech Republic
In the past 24 hours, the Czech National Bank (CNB) reported a preliminary profit for 2024 of CZK 154.8 billion, a significant increase from the previous year. It attributed this financial rise to successful foreign exchange operations and efficient management of foreign exchange reserves.
In addition, the unemployment rate rose to 4.1 % in December, reflecting seasonal fluctuations in employment and persistent problems in some industries. The labour market continues to adjust to post-pandemic conditions, with efforts underway to address labour requirements and the mismatch between skills on offer and in demand.

Foreign investments - trends and attractions: 24-hour overview
The Czech energy company CEZ has entered into a strategic partnership with the British company Rolls-Royce SMR to develop and deploy small modular nuclear reactors (SMRs) in the country. Under this cooperation, CEZ will acquire a 20% stake in Rolls-Royce SMR, representing an investment of several billion crowns. The first SMR is planned for the existing Temelín nuclear power plant, with the aim of providing up to 3 GW of power by the early 2030s. This initiative is expected to enhance the Czech Republic's energy security and support its transition from coal-fired power to nuclear and renewable energy sources. On the manufacturing side, biotech company Novavax announced the sale of its Czech manufacturing facility to Novo Nordisk for $200 million. Proceeds from this sale are earmarked to strengthen Novavax's vaccine development. This transaction reflects the dynamic nature of foreign investment in the Czech manufacturing sector and highlights the country's role in the global pharmaceutical supply chain.

Important events from the Czech Republic
In the automotive sector, Toyota exceeded its production plan for the previous year, successfully dealt with supply chain issues and avoided major disruptions. This success reflects the company's resilience and adaptability in a volatile market environment.
Significant events outside the Czech Republic with global impact On the global stage, the European automotive industry is facing challenges as a result of stricter emission regulations introduced by the European Commission. Car manufacturers are under pressure to meet these standards or face heavy fines, prompting calls for changes to the regulations to give the industry more time to comply. In addition, geopolitical tensions have led the Czech Republic to close its airspace to Russian airlines, thereby aligning itself with wider European measures. These measures highlight the interconnectedness of global politics and economic policies, which may have an impact on international trade and travel.

Overview of the main macroeconomic indicators from the Czech Republic: January 2025

HDP Q3 1,4%
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: 33 040 USD
GDP purchasing power parity: 645 540 000 000 USD
Average gross nominal wage Q3 2024: 45 412 CZK (+7%)
Minimum wage: 20 800 CZK

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): 7 002 614 340 000 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 Q3 2024: -34 406 000 000 CZK
Consolidated public debt Q3 2024: CZK 3,449,937,000,000

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 3.1.2025, https://csu.gov.cz/
Czech National Bank, official website, accessed 3.1.2025, https://www.cnb.cz/
Czech National Bank - Monetary Policy Report - Autumn 2024 page 19, accessed 28.12.2024
International Monetary Fund, official website, accessed 4 January 2025, https://www.imf.org/

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photo: sb.by