The financial situation of many Czechs in 2024 presents a mixed picture: while some can spend more thanks to rising real wages, others are grappling with mounting debt. Young people, in particular, are increasingly affected by financial difficulties, as recent data and expert analyses reveal.
While Czechs are spending more this year, statistics show that many are also struggling with rising debts and repayment issues. According to a report by the news channel ČT24, the number of unpaid consumer loans increased by 15% last year.
There is, however, a glimmer of hope: banks and other lenders report that the tendency to take out loans specifically for gifts has declined in recent years—a trend that experts hope will continue.
“Czechs are spending more on Christmas presents, but this is because they can afford to, thanks to higher real wages and additional disposable income, rather than relying on loans,” David Navrátil, chief economist at Česká spořitelna, told ČT24.
Nevertheless, the gap between those who can save and those struggling financially is widening. A growing proportion of people—about one in ten—are turning to their savings or taking out loans to make ends meet. These individuals often face financial strain as a significant portion of their income is consumed by food and housing costs.
Young people under the age of 24 are particularly vulnerable, frequently taking out loans to purchase cars or electronics. This has led to a noticeable increase in the number of non-performing consumer loans within this age group.
