Czech car production has reached the pre-crisis level
2023.02.06 06:41
Czech car production has reached the pre-crisis level
By Kristina Sobol
Budrigannews.com – According to the data, Czech industrial output increased by 1.7% in 2022, bringing it back to pre-pandemic levels. This was primarily attributable to the production of automobiles, which is likely to struggle this year due to supply-chain bottlenecks.
It grew by 4% in December compared to the previous year, which was slightly lower than the 4.3% growth that analysts had anticipated.
“In 2022, industrial production reached the same level as it had been prior to COVID in 2019.” According to Radek Matejka of the statistics office, “the most significant influence on this result was the production of motor vehicles, where output grew by more than a tenth year-over-year.”
In spite of the expansion, households were impacted by high inflation at the end of the year, which forced the Czech economy into recession for the first time since 2020.
Analysts anticipate a bumpy 2023 for the industry as a result of the car industry’s supply issues with components and the high cost of energy, despite some improvement in recent weeks.
Volkswagen is a well-known Czech automaker (ETR:). Due to a lack of chips and other components, Skoda Auto or Toyota’s local plant had to cut production.
According to Czech Banking Association chief economist Jakub Seidler, “despite the general optimism in the markets at the beginning of the year, a number of risks remain and if the industry avoids a downturn this year, it will be a positive outcome.”
The Czech Republic’s foreign trade deficit increased from 8.9 billion crowns in 2021 to 198.1 billion crowns ($8.98 billion) in 2022, according to a separate release from the statistics office.
