CFOs of Czech companies are expecting only low gross domestic product (GDP) growth this year, which they believe will not exceed 0.5 percent. Inflation, on the other hand, is expected to remain high this year, with an annual average of 9.9 percent. They are also counting on rising costs, especially personnel costs, this is according to a survey by Deloitte.
Uncertain economic development and a drop in demand are the main factors identified by more than half of CFOs as a significant risk for their companies. A shortage of skilled labour is seen as the third most significant threat, with 40 per cent of CFOs identifying it as a risk.
Companies anticipate rising costs this year. “CFOs expect cost increases in 2023 in almost every category surveyed. There is a particularly strong consensus in the area of personnel costs, with 91 per cent of CFOs surveyed expecting them to increase, while no one expects them to decrease at all,” said Ladislav Šauer of Deloitte. According to the survey, companies will also face higher costs for bad loan write-offs.
While CFOs expect production and business-related costs to rise, the amount of income tax paid by companies should remain the same, they said. “As the tax rate in this area remains the same, it can be concluded from the answers that CFOs expect their companies to have similar year-on-year earnings (offsetting increased costs with taxable income) and therefore a similar tax base,” said Radka Mašková, a director in Deloitte’s tax and legal department.
Source: Deloitte and CTK
