In April, the Czech Republic’s economy experienced a slowdown in industrial production and construction, although the results improved compared to the previous month. However, foreign trade showed a significant surplus. Despite difficulties in key sectors such as energy and metallurgy, growth in exports of vehicles and electronic equipment supported the economy.
Czech Industrial Slowdown
According to data published by the Czech Statistical Office (CSO), industrial production in the Czech Republic fell by 0.4% in April compared to the same month a year earlier, whereas it had increased by 2.9% in March. The year-on-year drop in output was mainly attributable to the decrease in production in the energy sector and the continued decline in the production of machinery, equipment, metallurgy and foundry. The production and distribution of electricity, gas and heat fell by 10% year-on-year, due to planned power plant outages, lower gas consumption due to warm weather, and declining production at coal-fired power plants. In particular, coal production decreased by more than a fifth compared to the previous year.
In contrast, some sectors performed well. In particular, the production of computers, electronic and optical equipment made a positive contribution to overall industrial production. Repair and installation of machinery and equipment, along with other manufacturing industries, also showed solid growth. Notable was the increase in the production of other means of transport, such as trains, trams, buses and aeroplanes, which grew by almost a third compared to the previous year. These expanding sectors partially offset the decline in other areas, supporting the country’s industrial economy. However, in April, the average number of registered employees in the industry decreased by 1.9% year-on-year.
Veronika Doležalová, head of the CSO’s industrial statistics department, said that the growth in the value of new orders was mainly influenced by the production of motor vehicles, with an increase in orders from abroad compared to the previous year. Companies in the production of other transport equipment won large or long-term orders. The value of new orders decreased by 0.8 % in April compared to March. In contrast, it increased by 3.6% compared to April last year. New orders from abroad increased by 5.3% year-on-year, while domestic orders grew by 0.8%.
Construction slowdown Czech Republic
According to data published by the Czech Statistical Office (CSO), construction output in the Czech Republic slowed by 0.3% year-on-year in April, following a significant 8.3% year-on-year decline in March. This slowdown in April was mitigated by a 3.2% increase in the value of civil engineering construction, which includes road construction and telecommunication and energy networks. However, the production of buildings in the civil engineering sector decreased by 2% year-on-year.
This year, the output of the construction sector has shown significant changes, with the decline in March being the most pronounced since February 2021.
Petra Cuřínová, head of the CSO’s Department of Construction and Housing Statistics, said that the indicative value of buildings for which building permits were issued in April reached CZK 45 billion. However, the indicative value of buildings for which permits were issued in April decreased by 16.5 %, a decrease that mainly affected the segment of large buildings with a budget of more than CZK 1 billion. In contrast, the indicative value of smaller buildings increased by 9.7%.
In April, the construction of 3,642 flats commenced, marking an increase of 35.4% compared to the same month last year. This increase was driven by the construction of flats in apartment buildings, while the number of flats in family houses decreased year-on-year. Statisticians also reported that only 3,916 flats were completed in April, down 8.1% year-on-year.
Czech trade growth
Preliminary data published on the website of the Czech Statistical Office (CSO) shows that the Czech Republic’s foreign trade recorded a surplus of CZK 33.1 billion in April, CZK 24.1 billion higher than a year earlier. This positive result was mainly influenced by trade in cars. In contrast, trade in refined oil products had a negative impact and increased the deficit by CZK 4.4 billion.
Jana Mazánková, head of the CSO Trade Balance Department, said that exports grew year-on-year in almost all commodity groups. Exports in April increased by 19.7% year-on-year to CZK 416.2 billion, while imports rose by 13.1% to CZK 383.1 billion. However, on a monthly basis, both exports and imports decreased by 1.1% and 0.3%, respectively.
According to statisticians, the overall foreign trade result was positively influenced by a trade surplus of CZK 15.7 billion in motor vehicles. The trade balance in electrical equipment also improved, reaching a surplus, while the deficit in oil and gas decreased by CZK 4.5 billion. In trade with EU countries, the surplus increased by CZK 12.4 billion year-on-year, while the deficit with non-EU countries decreased by CZK 11.2 billion.
Sources: https://www.ceskenoviny.cz/zpravy/2528219
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