GDP Resources and Uses - 4th quarter of 2023

According to the refined estimate, the gross domestic product increased in the Q4 2023 compared to the previous quarter by 0.2% and it decreased by 0.2% in the year-on-year comparison. The GDP decreased for the whole year 2023 by 0.4%.

The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1] in the Q4 was by 0.2% higher compared to the previous quarter. Compared to the corresponding quarter of 2022, it decreased by 0.2%.

GDP development (%)

GVA development (%)

The gross value added (GVA) increased in the Q4 2023 by 0.6%, quarter-on-quarter (q-o-q), and by 0.3%, year-on-year (y-o-y). In the q-o-q comparison, industry contributed the most to the GVA increase (1.7% growth). Also real estate activities (+1.9%) and professional, scientific, technical and administrative activities (+0.9%) were successful. Construction decreased by 2.5%. Financial and insurance activities recorded a decrease, too (-0.9%).  

The following economic activities were contributing the most to the y-o-y increase of the GVA (+0.3%): manufacturing +0.4 percentage point (p. p.; a y-o-y increase by 1.7%) and information and communication +0.3 p. p. (+4.0%). On the other hand, a group of economic activities of trade, transportation, accommodation and food service activities had a negative influence of -0.4 p. p. (-1.8%). Construction decreased by 0.4%, y-o-y.   

On the demand side, higher final consumption expenditure of households, gross fixed capital formation, and an increasing external demand were the key factors of the q-o-q GDP increase in the Q4 2023. A negative influence came from final consumption expenditure of general government and a change in inventories.

“In the fourth quarter of 2023, the performance of the economy declined by 0.2%, year-on-year. External demand and an increase in consumption expenditure of households had a positive contribution. It was the opposite as for the capital formation, where investments to fixed capital were increasing, however, inventories considerably decreased,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO), comments on the data.  

Final consumption expenditure of households increased by 0.5%, q-o-q, while purchases of durables and semi-durables as well as of services increased. In the y-o-y comparison, they decreased by 0.5%.  

Final consumption expenditure of general government decreased by 1.3%, q-o-q, and increased by 1.9%, y-o-y.

Gross fixed capital formation increased by 1.1%, q-o-q, and by 4.7%, y-o-y. A y-o-y increase occurred in investments to transport equipment and machinery and equipment. Investments to dwellings, other buildings and structures decreased. The change in inventories[2] was CZK -54.8 billion, which was by CZK 103.5 billion less compared to the corresponding quarter of the previous year.

The international trade balance of goods and services at current prices reached the value of CZK 128.0 bn; thus it was by CZK 106.4 bn higher than in the corresponding period of the previous year. Exports increased in real terms by 2.2%, q-o-q, and by 1.0%, y-o-y. The development was influenced the most by an increase in exports of motor vehicles, fabricated metal products and chemical products. Imports decreased, q-o-q, by 2.4% and by 4.7% in the y-o-y comparison.

As for the price development in the Q4 2023, the total GDP deflator increased by 6.0%, y-o-y. In the q-o-q comparison, it remained unchanged.   

The volume of labour costs[3] increased by 6.0%, y-o-y, in the Q4 2023.

Total employment[4] decreased by 0.1% compared to the previous quarter and in the y-o-y comparison it increased by 0.4%. In total, by 1.6% more hours were worked compared to the previous quarter and in the y-o-y comparison, it was by 0.6% more.

GDP resources and uses in 2023

The GDP for 2023 was by 0.4% lower compared to the year 2022. The year-round development was negatively influenced by the final consumption expenditure of households (-1.2 p. p.) and by a change in inventories (-3.1 p. p.). The following had a positive influence: final consumption expenditure of general government (+0.6 p. p.), gross fixed capital formation expenditure (+1.1 p. p.), and external demand (+2.2 p. p.). 

Final consumption expenditure of households decreased by 3.1%. Final consumption expenditure of general government increased by 3.0%. Gross fixed capital formation was by 3.3% higher. The international trade balance increased at current prices by CZK 312.4 bn, y‑o‑y, to CZK +378.0 bn.

The GVA in 2023 increased by 0.5% compared to the previous year. The GVA increase was the most significantly contributed to by development in manufacturing (+0.5 p. p.) and information and communication (+0.4 p. p.). A decrease occurred in a group of economic activities of trade, transportation, and accommodation and food service activities (-0.4 p. p.).

Total employment increased by 0.8%, y-o-y, to 5 479 thousand persons. In total, there were by 0.6% more hours worked than in the year 2022.