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

Overview of the latest economic events in the Czech Republic

The labour market remains resilient and the unemployment rate is at low levels, underlining the strong demand for labour in various sectors. The automotive industry, which is an important pillar of the Czech economy, posted a slight increase in output, driven by a recovery in supply chains and strong demand from European markets. However, energy prices continue to be a cause for concern, with recent sharp increases sparking discussions on alternative energy sources and sustainability measures.
Foreign trade data revealed a slight increase in exports, supported by machinery and equipment, which points to the continued integration of Czech products in international markets. Overall, these updated data suggest cautious optimism about the Czech Republic's economic trajectory.

Analysis of today's stock market trends in the Czech Republic

Today's developments on the Czech stock market show mixed prospects, as investors are orienting themselves according to various economic signals and global influences. The Prague Stock Exchange experienced moderate fluctuations, with the financial and industrial sectors showing resilience against the backdrop of geopolitical uncertainty affecting European markets. Key players in the financial sector recorded modest gains, boosted by positive earnings reports and favourable interest rate forecasts.

Meanwhile, the technology and consumer sectors have seen declines as concerns about inflation and supply chain disruption persist. Shares of energy companies also faced pressure due to volatile commodity prices. Although investor sentiment remains cautious, there is optimism as several companies in the manufacturing segment have announced expansion plans, suggesting an economic recovery. Overall, the market reflects a cautious but hopeful mood as participants anticipate brighter economic indicators in the coming days.

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

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%)
Consumer price index (annualised) 2.8 %
Consumer price index (m/m) 0.1 %
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

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

Population 2024/6: 10 879 069
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

(GH) - photo: fxsrteet.cz

Sources:
Czech Statistical Office, official website accessed 30.12.2024, 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/