Quarterly Sector Accounts - 4. quarter of 2018

Income of households increased in real terms by 4.7 % in 2018

02.04.2019
Code: 050057-18
 

In 2018, The total of real monetary and non-monetary income of households increased in real terms by 4.7%. The real consumption per capita increased by 3.4%, year-on-year (y-o-y). The profit from foreign investment reached 7.8% of the gross domestic product (GDP) in 2018.



Non-financial corporations: investment rate increased in Q4 2018, y-o-y

The profit rate in the Q4 2018 was 46.6%, which is by 0.3 percentage point (p. p.) less, quarter-on quarter (q-o-q), and by 2.1 p. p.1 less, year-on-year (y-o-y). The total labour costs of non-financial corporations increased by 8.6%, y-o-y1. The investment rate increased by 0.5 p. p., q-o-q, and reached 30.2%. It increased by 2.0 p. p., year-on-year1.


Households: real income increased by 1.6% in Q4 2018

The household real income per capita increased by 1.6%, q-o-q, in the Q4 2018. In the y-o-y comparison it was by 4.6% up1. The household real consumption per capita grew slower, i.e. by 0.9%, q-o-q, and by 3.0%, y-o-y.

The average monthly income from employment reached CZK 34 8431 in the Q4 and it increased in real terms by 0.3%, q-o-q; in the y-o-y comparison it was 3.5% up1.

Resulting from the faster growth of household income compared to their expenditure was a higher saving rate compared to the previous quarter, i.e. 11.7%. The investment rate in the household sector increased by 0.1 p. p., quarter-on-quarter, and reached 9.3%.


Non-financial corporations in 2018: wage costs increased by 9.0%

The profit rate in 2018 declined to 47.0%, which was by 2.3 p. p. less, y-o-y1. Nevertheless, the profit rate in the Czech Republic still remained high above the EU average, which is approximately 40%. Yet profit has been still growing if measured in absolute value. The reason behind the profit rate decline was a faster growth in wage costs, which increased by 9.0%, y-o-y1. The investment rate increased by 1.5 p. p.1 compared to that of 2017 and reached 29.6%.

The profit rate and the investment rate of non-financial corporations (%)

 

Q1

Q2

Q3

Q4

Year 2018

Profit rate

48.0

47.0

46.9

46.6

47.0

Investment rate

28.8

29.5

29.7

30.2

29.6


Households in 2018: real income increased by 4.7%

The household real income per capita increased by 4.7% compared to that of 2017. The household real consumption per capita grew at a 1.3 p. p. slower pace, i.e. by 3.4%.


Household real income and expenditure, y-o-y change (%)

 

Q1

Q2

Q3

Q4

Year 2018

Real income

5.4

4.1

4.9

4.6

4.7

Real consumption (expenditure)

4.3

3.3

3.2

3.0

3.4

The average monthly income from employment reached CZK 32 1471 in 2018 and increased by 5.0%, in real terms, compared to 2017.

The saving rate reached 10.8% in 2018 and was by 1.4 p. p.1 higher than in 2017. The investment rate in the household sector reached 9.4% in 2018 and thus it slightly increased by 0.2 p. p.1


Relationship to the rest of the world in 2018: profit from foreign investment exceeded CZK 414 billion

The profit from foreign investment reached 7.8% of GDP. Foreign owners distributed almost CZK 294 billion in the form of dividends; over CZK 120 billion were reinvested. This trend reflects high profitability of foreign direct investment in the Czech Republic.

On the contrary, outflow of income from profit was partially compensated by inflow of income from abroad, especially by interest and income from employment. A negative balance of primary income from abroad reached CZK 270.8 billion and thus it was by CZK 40 billion higher, y-o-y.

The gross national income in real terms increased by 3.9% in 2018.

The gross disposable income for the entire economy in real terms grew by 3.9% in 2018.


GDP estimate refinement

New data for the general government sector were also incorporated when compiling sector accounts for the Q4 2018. It led to a more precise estimate of the GDP growth rates. The GDP increased by 2.6%, y-o-y, in the Q4 2018 and in the q-o-q comparison it was 0.8% up. In 2018, the GDP increased by 2.9%. For the time series of GDP resources and uses see: https://www.czso.cz/csu/czso/hdp_ts.

1 Seasonally non-adjusted piece of data.

All terms are in terms of national accounts; for explanations of terms written in bold italics see: https://apl.czso.cz/nufile/Definitions.pdf.

 

Contact person: Vladimír Kermiet, Director of the National Accounts Department, phone number (+420) 274 054 247, e-mail: vladimir.kermiet@czso.cz
Used data sources updated as at: 29 March 2019
Related CZSO website: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate
Next Release will be published on: 28 June 2019 (Quarterly Sector Accounts for the first quarter of 2019)

Data of quarterly sector accounts are seasonally adjusted unless otherwise stated.

The news releases of Eurostat on quarterly sector accounts are published later. The latest published information for the second quarter of 2018 is available at:
https://ec.europa.eu/eurostat/web/products-press-releases/-/2-11012019-AP,
https://ec.europa.eu/eurostat/web/products-press-releases/-/2-11012019-BP,
https://ec.europa.eu/eurostat/web/products-press-releases/-/2-29012019-AP .

Quarterly sector accounts data are published on the CZSO website in the tables of Transactions in Products and Distributive Transactions by Sector: http://apl.czso.cz/pll/rocenka/rocenkavyber.kvart_qsa?mylang=CZ
and Quarterly Non-Financial Sector Accounts (Current and Capital Accounts): 
http://apl.czso.cz/pll/rocenka/rocenkavyber.kvart_qsa_mat?mylang=CZ

 

 

  •      acsu040219.docx

  • Annexes:
  • Table 1 Selected indicators of Quarterly Sector Accounts - (seasonally non-adjusted data)
  • Table 2 Selected indicators of Quarterly Sector Accounts - y-o-y change (seasonally non-adjusted data)
  • Table 3 Selected indicators of Quarterly Sector Accounts (seasonally adjusted data)
  • Table 4 Selected indicators of Quarterly Sector Accounts - q-o-q change (seasonally adjusted data)
  • Chart 1 Average monthly income of households from employment – seasonally adjusted
  • Chart 2 Real income and consumption expenditure of households – seasonally adjusted
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Published: 02.04.2019
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