Overview of the latest economic events in the Czech Republic
In the past 24 hours, the Czech government approved a subsidy for coal-fired power plants. The decision is aimed at supporting energy producers facing financial challenges in the transition to cleaner energy sources. The subsidy is intended to ensure energy security during the transition to sustainable alternatives. The end of Russian gas supplies via Ukraine on 1 January 2025 has led to adjustments in gas flows in Central Europe. Austria has increased imports from Germany and Italy after flows from Slovakia stopped due to the expiry of the transit agreement between Russia and Ukraine. Slovakia, which also lost supplies from Russia via Ukraine, now imports gas from Hungary, mainly via the TurkStream pipeline. The Czech Republic has switched its imports back to the German network, which has facilitated the abolition of the German transit fee. According to the data, gas flows from Hungary to Slovakia amounted to 87 GWh, while the Czech Republic received 177 GWh from Germany without any gas exports.
Foreign investments - trends and attractions: 24-hour overview
Austrian furniture retailer XXXLutz has announced the acquisition of German group Porta, which operates approximately 140 stores in Germany, the Czech Republic and Slovakia. In the Czech Republic, Porta operates 14 stores under the Asko brand. The acquisition is expected to strengthen XXXLutz's market position in Central Europe.
Important events from the Czech Republic
The Czech National Bank (CNB) has increased its gold reserves by more than 20 tonnes in the past year and aims to increase its total reserves to 100 tonnes. Governor Aleš Michl said the move was part of the bank's strategy to diversify its assets and strengthen financial stability. On the corporate front, Czech energy company CEZ reported a net profit of CZK23.4bn ($984m) for the first three quarters of 2024, down 27.31pc from the same period last year. The drop in profit is due to lower revenues in trading and mining. Despite this, CEZ continues to pursue plans to expand its nuclear power capacity, including agreements to develop small modular reactors, indicating a strategic shift towards sustainable energy sources.
Significant events outside the Czech Republic with global impact
Globally, inflation in the euro area has picked up, moving away from the European Central Bank's target. These developments have implications for monetary policy decisions and economic stability in the euro area and potentially affect trade and investment flows with neighbouring economies, including the Czech Republic. Natural gas prices in the US are rising due to forecasts predicting the arrival of the polar vortex. Such climatic events usually lead to increased heating demand, which affects global energy prices. The ripple effect of these price changes is expected to impact energy importers around the world, including the Czech Republic, which may affect domestic energy costs.
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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