Quarterly Sector Accounts - 4th quarter of 2019

In 2019, the total of real monetary and non-monetary income of households increased by 5.6%. The real consumption per capita increased by 3.4%, year-on-year (y-o-y). The profit from foreign investment reached 7.1% of the gross domestic product (GDP) in 2019.

Non-financial corporations: both profit rate and investment rate increased in the Q4 2019

The profit rate in the Q4 2019 was 46.8%, which is by 0.2 percentage point (p. p.) more, quarter-on quarter (q-o-q), and by 0.2 p. p.¹ more, year-on-year (y-o-y). The total labour costs of non-financial corporations increased by 5.2%¹, y-o-y. The investment rate increased by 0.9 p. p., q-o-q, and reached 29.4%. It increased by 0.7 p. p.¹, year-on-year.

Households: real income increased by 1.1% in the Q4 2019

The total of real monetary and non-monetary income of households per capita increased by 1.1%, q-o-q, in the Q4 2019. In the y-o-y comparison, it increased by 5.4%¹. The household real consumption per capita grew faster, quarter-on-quarter, i.e. by 1.4%; in the y-o-y comparison it was by 3.3%¹.

The average monthly income from employment reached CZK 36 901¹ in the Q4 and it increased in real terms by 0.8%, q-o-q; in the y-o-y comparison it was 2.8% up.

Resulting from the faster growth of household expenditure compared to their income was a lower saving rate compared to the previous quarter, i.e. 13.2%. The investment rate in the household sector remained unchanged, quarter-on-quarter, and reached 8.5%.

Non-financial corporations in 2019: labour costs increased by 6.5%

The profit rate in 2019 decreased to 46.5%, which was by 0.1 p. p.¹ less, y-o-y. Nevertheless, the profit rate in the Czech Republic 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 of labour costs, which increased by 6.5%¹, y-o-y. The investment rate decreased by 0.5 p. p.¹ compared to that of 2018 and reached 28.5%.

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

	Q1	Q2	Q3	Q4	Year 2019
Profit rate	46.5	46.3	46.6	46.8	46.5
Investment rate	28.0	27.9	28.6	29.4	28.5

Households in 2019: real income increased by 5.6%

The household real income per capita increased by 5.6% compared to that of 2018. The household real consumption per capita grew at a 2.2 p. p. slower pace, i.e. by 3.4%.

Household real income and expenditure, y-o-y change (%)¹

	Q1	Q2	Q3	Q4	Year 2019
Real income	5.8	5.5	6.1	6.0	5.6
Real consumption (expenditure)	2.8	3.3	4.3	3.3	3.4

The average monthly income from employment reached CZK 35 043¹ in 2019 and increased by 3.0%, in real terms, compared to 2018.

The saving rate reached 13.2% in 2019 and was by 2.3 p. p.¹ higher than in 2018. The investment rate in the household sector reached 8.7% in 2019 and thus it slightly decreased by 0.1 p. p.¹

Relationship to the rest of the world in 2019: profit from foreign investment reached almost CZK 401 billion

The profit from foreign investment reached 7.1% of GDP. Foreign owners distributed CZK 319 billion in the form of dividends; almost CZK 82 billion were reinvested. This trend reflects high profitability of foreign direct investment in the Czech Republic.

On the contrary, the outflow of income from profit was partially compensated by an inflow of income from abroad, especially by interest and income from employment. A balance of primary income from abroad was by CZK 38 billion better, y-o-y, and reached CZK −254.0 billion.

The gross national income increased in real terms by 3.9% in 2019.

The gross disposable income for the whole economy increased in real terms by 4.1% in 2019.

GDP estimate refinement

New data for the general government sector were also incorporated when compiling sector accounts for the Q4 2019, which resulted in a more precise estimate of the GDP growth rates. The GDP increased by 2.0%, y-o-y, in the Q4 2019 and in the q-o-q comparison it was 0.5% up. In 2019, the GDP increased by 2.5%. 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: 24 March 2020
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: 30 June 2020 (Quarterly Sector Accounts for the first quarter of 2020)

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 third quarter of 2019 is available at:
https://ec.europa.eu/eurostat/web/products-press-releases/-/2-14012020-AP,
https://ec.europa.eu/eurostat/en/web/products-press-releases/-/2-14012020-BP,
https://ec.europa.eu/eurostat/en/web/products-press-releases/-/2-28012020-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

Attachments

acsu033120.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