Page 35 - CE Outlook Regions 2024

3.0 Real economy outlook 3.1 Real economy - Czech Republic
3.1.1 Retail
Czech retail sales were in decline throughout 2023 as households continued to struggle with soaring inflation. The rate of decline eased towards the end of the year, and was -1.4% y/y in October compared to -9.5% y/y in March.
The Czech Banking Association noted that in comparison to pre-pandemic year 2019, retail sales between 1Q-3Q dropped the most out of all EU member countries. Sales of food dropped by 11% in this period when compared to 2019, which was the steepest drop in the EU along with Denmark.
Despite some positive signals, retail sales are not expected to remain in positive figures until 2024, when lower inflation accompanied by a return to growth in real wages is projected to revive household purchasing power.
3.1.2 Banks
Czech banks registered profits, according to the figures available for 2023, but this is short of the profits registered in the exceptional year
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