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CFOs Expect Positive Economic Development, Increased Salaries and Higher Labour Costs This Year

Deloitte survey among 600 CFOs across Central Europe, including the Czech Republic

Prague, 15 March 2017 – CFOs’ optimism in respect of economic development continues despite the expected slow-down in economic growth in 2016. Deloitte’s survey shows that more than half of CFOs in the Czech Republic estimate the GDP growth to range between 1.5 and 2.5 percent. The concerns about low unemployment and lack of qualified labour persist. 95% of CFOs consider the growth in salaries to be one of the largest expenses to influence business in 2017. That is the reason why they want to reduce costs of production rather than labour.

“This year’s survey showed that 80% of CFOs consider finding a sufficient number of qualified employees to be a critical issue. The increasing demand for labour is connected to the pressure on growth in salaries. The sources of inflation are also expected to include growing rentals and real estate prices. Another critical issue for 2017 will be the termination of the CNB’s exchange rate commitment and returning the Czech crown exchange rate to the market regime, albeit with possible significant interventions of the central bank in case of excessive fluctuation,” reminded Martin Tesař, Audit Partner of Deloitte.

According to CFOs in the Czech Republic, the GDP will continue to grow while unemployment will remain very low. CFOs’ opinions show that the Czech economy will thrive despite the UK leaving the EU. They also admit a lower risk appetite with 28% of CFOs considering the business environment very uncertain.

CFO Survey in Central Europe

Deloitte has already organised its eighth confidence survey among CFOs, covering nearly 600 respondents seated in 12 countries in Central Europe, including the Czech Republic, Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine. The study included a regional survey among 115 CFOs seated in the Czech Republic.

To download the survey results visit www.deloitte.cz/cfo.

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