The recovery of household consumption is a critical condition for economic recovery. Household consumption remains extremely subdued compared to the country’s history and the rest of Europe. The Czech economy has been stuck in recession this year. In the third quarter, it fell by 0.7% year-on-year, and the gross domestic product was lower by half a quarter. The Ministry of Finance forecasts a decline in GDP by 0.3% for this year, with potential growth of 1.7% next year. However, the return to growth might come next year. Still, it is likely to be weak, if there is any at all, according to Richard Hindls, emeritus rector of the University of Economics in Prague. With the fall of the economy, the standard of living also decreases. “The real wage has fallen roughly to the level of 2017, in terms of material quality of life; we have thus returned about six years,” warned former Prime Minister and Governor of the Czech National Bank Jiří Rusnok. Many of the EU, including Germany, are also in a slump. The Czech economy is significantly linked to Germany and is awaiting its recovery. Rusnok pointed out that the European Union has been losing weight in the world economy for a long time. At the same time, the USA maintains its share relatively stable despite the rapidly growing share of the rest of the world, especially Asia. According to him, the EU reacts worse to trends in the global economy.

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Source: Czech Daily