Data: Czech recovery continuing
7. 3. 2016 | Source: BusinessInfo.cz
The share of services in Czech gross value added (GVA - meaning the combined value of goods and services) fell during the post-crisis years. While in 2010, the figure reached 61.5 percent, it was down to 59.4 percent in 2014. But in terms of the EU28 average, the figure continued an upward trend, reaching 74 percent, according to new Eurostat figures.
"Many redundant industrial production workers found work in the service sector," says Roklen group's chief economist Lukáš Kovanda. Czech services reached their greatest relative levels during the post-2009 crisis years, when industry was hardest hit. But reviving industrial production now means a fall to pre-crisis levels.
"In recent years, the secondary sector (meaning finished goods) grew in importance thanks to a recovery in the manufacturing sector from the 2009 recession. The share of agriculture has also grown," notes Zuzana Cabicarová of the Czech Statistical Office.
Czech production is largely geared towards exports. It is currently experiencing a post-recession increase in industrial goods exports. "Only subsequently are we also seeing a growth in the volume of services, which tend to be more domestically oriented," says Petr Gapko, analyst at GE Money Bank.
Overall, the economic situation in the Czech Republic is clearly improving. "Last year saw wages go up, and we can expect them to increase further in 2016. Which is why I believe that the service sector can expect some relatively significant growth, and could even grow as a share of GDP," adds Gapko.
Originally published in E15 weekly, economic and business newsmagazine. Author: Markéta Žižková