While the Czech public paid little attention to the latest economic data, the time will almost certainly come when it will be impossible to ignore. The outlook for growth for the coming years is decidedly grim, especially given that tax revenues are falling far below expectations, writes Jaroslav Ungerman, chief economist for the Bohemian and Moravian Confederation of Trades Unions (ČMKOS).
Czech manufacturing performance deteriorated for a third month in June as new export business in the sector fell for an eight month running due to the ongoing crisis and uncertainty in Western European markets, an industry gauge published Monday showed.
The Czech National Bank (ČNB) has cut its key interest rate by a quarter of a point to a record low 0.5 percent, in line with market expectations, with months of sluggish domestic demand having sparked an economic recession.
The Czech current account showed a surprise Kč 1.3 billion surplus for October, thanks to a surplus balance of trade in goods and services, the Czech National Bank (ČNB) said on Tuesday. Market expectations had been for a deficit of Kč 4 billion, the Reuters news agency said.
The socio-economic divide between Bohemia and Moravia has widened, according to an annual study by experts from the University of Economics in Prague (VŠE) and the Czech Top 100 association. Jindřichův Hradec in South Bohemia was ranked first in terms of favorable socio-economic conditions; among those fairly poorly were the Karlovy Vary and Olomouc regions.
While loan growth in Central and Eastern Europe (CEE) will not occur in the same manner witnessed during the past decade, the medium to longer-term outlook for banking sector growth remains very favorable in at least six CEE markets, including the Czech Republic, which collectively represent 80 percent of total banking sector assets in the region, Raiffeisen says in a new report.