GDP Resources and Uses - 4. quarter of 2022

GDP increased by 2.4% in 2022

03.03.2023
Code: 050056-22
 

According to the refined estimate, the gross domestic product decreased in the Q4 2022 compared to the previous quarter by 0.4% and it increased by 0.2% in the year-on-year comparison. The GDP increased for the whole year 2022 by 2.4%.


The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1] in the Q4 was by 0.4% lower compared to the previous quarter. Compared to the corresponding quarter of 2021, it increased by 0.2%.

GDP development (%)

 

Q1

Q2

Q3

Q4

Year 2022

compared to the previous quarter

+0.6

+0.3

-0.3

-0.4

+2.4

compared to the corresponding quarter of 2021

+4.7

+3.5

+1.5

+0.2

GVA development (%)

 

Q1

Q2

Q3

Q4

Year 2022

compared to the previous quarter

+0.5

+0.5

-0.2

+0.3

+2.5

compared to the corresponding quarter of 2021

+4.0

+3.4

+1.5

+1.0

The gross value added (GVA) increased in the Q4 2022 by 0.3%, quarter-on-quarter (q-o-q), and by 1.0%, year-on-year (y-o-y). In the q-o-q comparison, manufacturing contributed the most to the GVA increase (1.6% growth). Also financial and insurance activities (+3.6%) and real estate activities (+2.4%) were successful. Construction increased by 0.9%. The following recorded a decrease: a group of economic activities of trade, transportation, and accommodation and food service activities (-0.3%), information and communication (-1.4%), and professional, scientific, technical and administrative activities (-0.3%).  

The following economic activities were contributing the most to the year-on-year increase of the GVA (+1.0%): industry +0.9 percentage points (p. p.; a y-o-y increase by 3.1%) and real estate activities +0.5 p. p. (+5.1%), whereas a group of economic activities of trade, transportation, accommodation and food service activities had a negative influence -0.5 p. p.
(-2.9%). Construction decreased by 2.8%, y-o-y.   

On the demand side, lower final consumption expenditure of households and a decrease in gross capital formation were the key factors of the q-o-q GDP decrease in the Q4 2022.
The y-o-y increase of GDP (+0.2%) was positively influenced by final consumption expenditure of general government +0.2 p. p.[2], gross fixed capital formation +0.9 p. p., and, most of all, by external demand +2.4 p. p. On the contrary, change in inventories -0.3 p. p. and especially decreasing final consumption expenditure of households -2.9 p. p. had a negative influence.

“Final consumption expenditure of households decreased by 2.8%, q-o-q. In the year-on-year comparison, it decreased by 5.5%; the biggest slump was recorded in purchases of durable goods. Expenditure on food was also significantly decreasing; it decreased by over 10%, y-o-y, however, a decrease was also reported for other items. Only expenditure on services was increasing,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO), comments on the data.  

Final consumption expenditure of general government increased by 3.9%, q-o-q, and by 0.9%, y-o-y; individual consumption expenditure supported the growth there.

Fixed capital formation decreased by 1.1%, q-o-q. A decrease occurred in investments to dwellings, other buildings and structures, as well as to transport equipment. Investments to machinery and equipment and to intellectual property products were increasing. In the y-o-y comparison, gross fixed capital formation increased by 4.6%.  

The balance of goods and services at current prices reached the value of CZK 11.1 bn; thus it was by CZK 4.9 bn lower than in the corresponding period of the previous year. Exports increased in real terms by 0.5%, q-o-q, and by 9.7%, y-o-y. The development was influenced the most by an increase in exports of electrical equipment and motor vehicles. Imports remained unchanged, q-o-q, and increased in the y-o-y comparison by 7.6%.

As for the price development in the Q4 2022, the total GDP deflator increased by 10.8%, y-o-y. In the q-o-q comparison, it already decreased by 0.5%.  

The volume of labour costs[3] increased by 6.2%, y-o-y, in the Q4 2022.

Total employment[4] decreased by 0.4% compared to the previous quarter and in the y-o-y comparison it increased by 1.3%.

In the Q4 2022, capture of Ukrainian refugees changed; as a novelty, they are considered to be residents in the Czech Republic. For more see the methodological note https://www.czso.cz/documents/11350/167650010/ahdp030323_komentar.pdf.


GDP resources and uses in 2022

The GDP for 2022 was by 2.4% higher compared to the year 2021. The following were the key factors of a year-round growth: gross capital formation expenditure and external demand. Final consumption expenditure of general government contributed +0.1 p. p., gross fixed capital formation +1.4 p. p., change in inventories +0.9 p. p., and external demand +0.6 p. p. The final consumption expenditure of households had a negative influence -0.7 p. p.

Final consumption expenditure of households decreased by 0.9%. Final consumption expenditure of general government increased by 0.7%. Gross fixed capital formation for the whole year 2022 was by 6.2% higher compared to the year 2021. Mainly investments in other buildings and structures and in transport equipment were increasing. The international trade balance ended up after 19 years negative: it decreased at current prices by CZK 187.6 bn, y‑o‑y, to CZK -8.3 bn.

The GVA in 2022 increased by 2.5% compared to the previous year. The economic growth occurred across all economic activities of the national economy. The GVA increase was the most significantly contributed to by development in manufacturing (+0.7 p. p.) and a group of economic activities of trade, transportation, and accommodation and food service activities (+0.6 p. p.).

Total employment increased by 1.7%, y-o-y, to 5 450 thousand persons. In total, there were by 3.6% more hours worked than in the year 2021.

 

[1] Unless otherwise stated, all data presented in this news release are adjusted for price, seasonal, and calendar effects.

[2] contributions to the GDP growth (imports for final use excluded), unless otherwise stated

[3] at current prices, not seasonally adjusted

[4] in terms of national accounts 

 

Notes:
Responsible head at the CZSO: Vladimír Kermiet, Director of the National Accounts Department, phone number (+420) 274 054 247, e‑mail: vladimir.kermiet@czso.cz
Contact person: Jan Benedikt, Quarterly Estimates Unit, phone number (+420) 274 052 750, e-mail: jan.benedikt@czso.czUsed data sources updated as at: 22 February 2023
Time series: https://www.czso.cz/csu/czso/hdp_ts
Since 30 May 2023 in the Database of National Accounts only: 
https://apl.czso.cz/pll/rocenka/rocenka.indexnu_kvart?mylang=EN&co=Q_HDP_ZAM
The News Release web page: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate
Next Release will be published on: 2 May 2023
(GDP preliminary estimate for the first quarter of 2023)

 

  •      ahdp030323.docx

  • Annexes:
  • Methodological note on the change of capture of Ukrainian refugees in the national accounts
  • Table 1 Quarterly estimate of gross domestic product, seasonally adjusted
  • Chart 1 Gross domestic product and gross value added – quarter-on-quarter real growth rate, seasonally adjusted
  • Chart 2 Gross domestic product and gross value added – year-on-year real growth rate, seasonally adjusted
  • Chart 3 Gross domestic product in the Czech Republic and in the European Union – quarter-on-quarter real growth rate, seasonally adjusted
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Published: 03.03.2023
The data are valid as of the release date of the publication.


Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz