Ukrainian refugees in the Czech Republic: an economic contribution that exceeds expectations
Ukrainians who have found temporary shelter in the Czech Republic are gradually becoming one of the key factors in the economic growth of this country. The first quarter of 2024 showed a significant financial contribution of Ukrainian refugees to the Czech economy, which turned out to be greater than expected. In this short period, they contributed to the Czech treasury almost 3 billion Czech crowns (equivalent to approximately 5.4 billion hryvnias) more than they received in the form of social assistance from the state. This is reported in uamedia.eu.
This shows that Ukrainians not only adapted to the new living conditions, but also became active participants in the economic process that supports the development of the Czech Republic.
Impact on the state budget of the Czech Republic
These 3 billion crowns, which the Ukrainian refugees brought to the budget of the Czech Republic, could be used to build 10 kilometers of a modern highway or to increase the pensions of all pensioners in the country by 1,200 crowns per year. These are not just numbers, but real opportunities for the development of infrastructure and improvement of the welfare of Czech citizens, which became possible thanks to Ukrainian refugees.
Czech experts expect that in the near future, income from Ukrainians will continue to grow, while the costs of their support, on the contrary, will decrease. This forecast is based on positive trends that have already been observed in previous years. For example, in 2022, the costs of Ukrainian refugees amounted to 25 billion crowns, while their contributions to the budget were at the level of 12.6 billion crowns. Already in 2023, the balance between expenses and income almost equalized: expenses amounted to 21.6 billion crowns, and revenues – 21 billion. Such dynamics indicate the gradual adaptation of Ukrainians to the Czech labor market and the growing economic efficiency of their presence in the country.
Main sources of income from Ukrainians
The largest part of the income that the Czech Republic receives from Ukrainians is social and medical insurance contributions. These payments provide not only social protection for the refugees themselves, but also strengthen the state budget of the Czech Republic, allowing additional funds to be directed to the development of various social programs and improving the level of medical services. It is worth noting that Ukrainians actively use the possibility of official employment, which ensures a stable inflow of insurance contributions to the Czech treasury.
The second important source of income is value added tax (VAT) and excise duty. This shows that Ukrainians not only find work, but also actively participate in the consumer market of the Czech Republic, buying goods and services. Their participation in the consumption process stimulates the economy, increasing tax revenues, which again benefit all citizens of the country.
Social and economic adaptation of Ukrainians in the Czech Republic
Currently, about 350,000 Ukrainians have received temporary protection in the Czech Republic. Of them, 118,000 have already found work, and in the vast majority of cases it is official employment. This is an important indicator, because official work provides not only a stable income for Ukrainians themselves, but also creates additional income for the state budget in the form of taxes and social contributions. Interestingly, about 30% of Ukrainian refugees work at more than one job, which demonstrates their high motivation and desire to integrate into Czech society.
The Czech Republic has become a second home for many Ukrainian refugees. Here they not only found refuge from the war, but were also able to find opportunities for work and development. Thanks to this, they became active participants in the economic life of the country that received them. Such integration is beneficial for both sides: Ukrainians get the opportunity to live and work in a safe environment, and the Czech Republic gets new able-bodied citizens who support its economy.
Therefore, Ukrainian refugees not only did not become a burden for the Czech Republic, as it is often perceived in society, but on the contrary, they turned into an important economic resource. Their contribution to the Czech economy helps the country to develop even in difficult times, when many European countries are facing economic difficulties.
This situation also demonstrates the importance of supporting refugees not only from a humanitarian, but also from an economic point of view. The integration of refugees into the labor market allows countries not only to provide them with social protection, but also to receive significant economic benefits. In the conditions of global challenges and instability, when states are increasingly faced with the need to accept refugees, the example of the Czech Republic can become an example for other countries on how to effectively integrate refugees into society and benefit from it for all.
Considering the above, it is safe to say that Ukrainian refugees have become not only those who need help, but also those who provide substantial support to the economy of the Czech Republic. This example is a strong example of how investing in refugee support can have long-lasting positive effects for the entire host country, especially if this support is provided in a comprehensive and strategic manner.
