Consumption Rises Over 5%, Public Deficit Reaches 7%
According to a January report from the Czech Statistical Office (CZSO), consumption and wages are on the rise. However, the public budget deficit has reached a record CZK 420 billion, nearly 7% of GDP. Photo credit: CG / Brno Daily.
The total per capita real and non-monetary income of households fell by 0.2% in Q3 compared with the previous quarter, but increased by 2.5% in an year-on-year comparison.
Wages are also rising. The average monthly income reached CZK 38,637 in Q3 2021, an increase of 0.7% in real terms compared to the previous quarter, and 1.8% year-on-year.
Real household consumption per capita rose by 3.4% quarter-on-quarter and by 5.4% year-on-year.
On a positive note, the economy has been reviving in 2021. “In the third quarter of 2021, GDP rose by 1.6%, and by 3.3% year-on-year,” said Vladimír Kermiet from CZSO.
Many, however, expect a tough year ahead, as the level of state debt increased rapidly under the previous government of Andrej Babis. Helena Horska, Chief Economist of Raiffeisen bank said on January 6: “We now know that the budget deficit is CZK 420 billion, which is nearly 7% of GDP. This is a record deficit. The debt has climbed to CZK 2.5 trillion. Debt repayments will reach CZK 274 billion, which makes up 4.2% of GDP.”