Real wages in the Czech Republic will fall by 8.3 percent this year due to high inflation. Of the four Visegrad countries, the Czechs are expected to see the biggest fall in real wages, higher than the EU average, according to a study by Prague-based investment company Cyrrus.
According to the analysis, this year’s real wage decline in the Czech Republic will be much higher than in the other Visegrad countries and than the EU’s 2.3 percent. Real wages are expected to fall by 2.3 percent in Poland, 1.1 percent in Slovakia and 0.3 percent in Hungary, the document said.
Next year, real wages are expected to rise by 0.6 percent in the EU. The same increase is expected in Poland. In Slovakia, real wage growth is expected to be 0.7 percent, while
Hungary is expected to see an exceptionally high increase of 2.3 percent.
Only in the Czech Republic is Cyrrus forecasting a decline of 0.1 percent next year. However, according to Cyrrus’ analysis, the fall in real wages in the Czech Republic will be temporary, they are expected to rise again soon.
Another study showed that the Czech Republic currently has the highest average monthly wage among the four Visegrad countries. According to the international financial consultancy Mazars, the average monthly wage in the Czech Republic is currently €1,533, compared to €1,349 in Hungary, €1,301 in Poland and €1,185 in Slovakia.
In August, it was reported by the Hungarian Central Statistical Office that the average gross earnings of full-time employees were HUF 497,200 (EUR 1207), or HUF 507,000 (EUR 1231) excluding public sector employees, while average net earnings after deducting benefits reached HUF 342,900 (EUR 832).
The increase in Hungary in average wages was mainly caused by the increase in the minimum wage and the guaranteed minimum wage, as well as already planned and additional wage increases.
However, in the summer, July retail trade data showed that households have started to adjust to the tighter economic environment and that consumption in the third quarter was no longer as much of a drag on economic growth as it was in the first half of the year. Although Hungarian households have not yet cut back their food consumption significantly, they are reaching for cheaper products on the shelf.
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