Development of the Czech Economy in 2022
Economic development in 2022 was adversely affected by numerous very negative causes, including, in the first place, the energy crisis, the war in Ukraine from February, disruptions in customer-supplier relationships, skyrocketing inflation as a result of the increase in prices of all raw materials and consumer goods, and the reverberating COVID pandemic from previous years, especially from 2021. The adverse impact on the economy was experienced especially in the second half of the year. More positive results were achieved in manufacturing enterprises.
Gross Domestic Product
According to the preliminary estimate, the gross domestic product in 2022 was 2.4 % higher, compared to 2021 (in 2021, it was 3.5 % higher). In the last quarter of 2022, the year-on-year increase was 0.4 %. The slowdown of GDP growth was mainly caused by household final consumption expenditure. Expenditure on gross capital formation, investment and better performance of foreign trade all had a positive influence. Relatively better gross value-added formation occurred especially in the industrial sectors, where the achieved growths counterbalanced the slumps in the sectors of trade, transport, healthcare, social services and education.
In 2022, total industrial production increased by 1.7 % in the year-on-year comparison. In the sector of mining and excavation, a 3.1 % increase occurred, the manufacturing industry was increased by 2.2%, while the production and distribution of electricity, gas and heat remained under the level of the year 2021. The highest year-on-year increase within the manufacturing industry occurred in the manufacture of motor vehicles (11.7 %), which significantly contributed to the total growth of industrial production. What reached above the level of 2021 was also the pharmaceutical industry (by 10.7 %), clothing industry (by 12.3 %) and mining industry (by 3.1 %). A drop occurred, on the contrary, especially in the manufacture of fabricated metal products and in the production and distribution of electricity, gas and heat. Besides the influence of the high energy demands of production, also the enormous increase in prices and problems in customer-supplier relationships had a negative impact. A certain role was also played by the low comparison basis of the year 2021.
In 2022, the performance of foreign trade (movement of goods across the border) ended up with a negative balance, amounting to CZK 198.1 billion (in 2021, the negative balance was CZK 9 billion). Compared to 2021, exports were 13.3 % higher, imports 18.0 % higher. The negative balance was caused predominantly by the skyrocketing prices of electricity, crude oil and natural gas, but also by higher prices of some other import commodities. A negative balance occurred, for example, in the categories of agriculture and hunting (minus CZK 10.5 billion), trade in food (minus CZK 51 billion), trade in metals and metal products (minus CZK 184.7 billion).
The average annual inflation rate expressed by an increment of consumer prices in 2022 was 15.1 %. This was the highest rate of inflation since the establishment of the Czech Republic. A higher rate of inflation was in 1993 – 20.8 %. In the year-on-year comparison, the prices of goods in total increased by 16.8 %, prices of services rose by 12.3 %. Actually none of the monitored commodities experienced any year-on-year price decline. A record-breaking increase was shown in particular in some types of foodstuff, especially sugar, eggs, flour, fats and oils. There was a massive increase in prices, mainly in the second half of the year, especially of foodstuff, where the reason was allegedly its increasing costs (skyrocketing prices of electricity, gas and unavailability of some items, especially of building materials, such as plastics, glass, paper).
Development of Salaries
According to preliminary data, the average gross monthly salary of employees (full-time equivalent) in 2022 achieved CZK 40 353. In the year-on-year comparison, this nominal value increment amounted to CZK 2 450 (6.5 %). Real salary was 7.5 % lower than in 2021. In the first quarter, real salary dropped by 3.6 %, in the second and third quarters by 9.8 % and in the fourth quarter by 6.7 %. A percentage increase, compared to 2021, was experienced in the financial and insurance business (+10.7 %), in information services and in real estate business (equally + 9.2%), in accommodation and gastronomy (+ 9.6 %) and in transport and warehousing (+ 9.0%). The nominal salary in healthcare and social services remained under the level of 2021.