Industrial Production in the Czech Republic Suffers Worst Year Since Covid-19

According to recent data, industrial production in the Czech Republic decreased by 0.4% in the past year. The decline was most notable in energy-intensive industries such as metallurgy and foundry work, and not even a rejuvenation in the automotive sector could offset it. This performance is the worst since 2020, a year significantly affected by the restrictions imposed due to the Covid-19 pandemic.

In December, the year-on-year decrease slowed to 0.7% after an industrial production decrease of 2.7% in November. This tells us that the overall industrial performance in the Czech Republic was significantly affected by declines in the production of other non-metallic mineral products, primary metals, metallurgy, and foundry work.

There was a decrease in electricity production compared to 2022. The overall decline could not be overturned, even by a revival in the production of motor vehicles and other transport equipment. The value of new industrial orders decreased by 1.7% year-on-year. However, revenues from industrial activity increased by four percent.

The decrease in production in the past year affected most industrial sectors in the Czech Republic. The production of other non-metallic mineral products, such as glass, porcelain, or building materials, decreased by 17.8%, and the production of primary metals, metallurgy, and foundry work decreased by 14.4%.

Interestingly, the production of motor vehicles increased by 16.1%, the production of other transport equipment increased by 17.8%, and a growth of 9.3% was recorded for the pharmaceutical industry. The number of employees in the Czech industry decreased by 1.8% last year, and their average wage increased by 8.7%.