The Czech economy saw moderate growth last year, with private consumption playing a key role in the positive development, while industry remained weak, according to the latest data from the Czech Statistical Office (ČSÚ).
Initial estimates from the ČSÚ indicate that gross domestic product (GDP) grew by 1.0% in 2024. In the fourth quarter, GDP increased by 0.5% compared to the previous quarter and by 1.6% year-on-year.
After adjusting for prices and seasonality, GDP in 2024 is provisionally estimated to be 1.0% higher than in 2023. Growth was primarily driven by higher consumer spending from private households and the state, while gross investment largely declined. Gross value added was supported mainly by trade, transport, accommodation, and catering services. In contrast, the manufacturing sector recorded a downturn.
“In the final quarter of last year, GDP grew by 0.5% compared to the previous quarter. This growth was driven by domestic demand, particularly higher consumer spending by private households. Foreign demand, however, declined,” commented Vladimír Kermiet, Director of the National Accounts Department at the Czech Statistical Office.
Compared to the previous year, GDP rose by 1.6% in the fourth quarter. The main drivers of growth were consumer spending by private households and gross investment, whereas the foreign trade balance had a negative impact. Value added was primarily supported by trade, transport, and accommodation and catering services. Other service sectors also performed well, while industry continued to weaken.
Employment rose by 0.3% in 2024. In the fourth quarter, it remained stable compared to the previous quarter but increased by 0.4% year-on-year.
