Zpět

Economy Policy

THE CZECH REPUBLIC SHOULD JOIN THE BANKING UNION ONLY ON ADOPTING THE EURO

The Czech banking sector remains more resilient and stable than those in many other EU Member States and banking union countries, and is in very good or even excellent condition. According to the indicators of the domestic banking sector assessed in the study, the Czech Republic would thus not benefit from joining the banking union in the current conditions. more

MACROECONOMIC FORECAST OF THE CZECH REPUBLIC, JANUARY 2021

The pandemic triggered by a new type of coronavirus, the measures taken to tackle the epidemic, and their knock-on effects caused deep and synchronous downturn of the global economy in 2020. Economic policy in all the countries affected responded by a sharp easing and by adopting massive fiscal and monetary stimuli, which limited the pandemic’s impact on short-term growth. more

THE CZECH ECONOMY DEVELOPMENT IN 1st HALF OF 2020

The Czech economy experienced the deepest downturn in Q2 2020 in its history. Gross domestic product (GDP) decreased by 11.0% in real terms year-on-year1 and by 8.7% quarter-on-quarter. Lowering of the foreign trade with goods and services balance surplus mainly contributed to the very deep economic slump. more

THE CZECH ECONOMY DEVELOPMENT - 1st HALF OF YEAR 2020

The Czech economy experienced the deepest downturn in Q2 2020 in its history. Gross domestic product (GDP) decreased by 11.0% in real terms year-on-year1 and by 8.7% quarter-on-quarter. Lowering of the foreign trade with goods and services balance surplus mainly contributed to the very deep economic slump. This was linked to the suspension of operations in some domestic as well as foreign businesses. Apart from the halt of export, demand on the part of buyers abroad also decreased. Expenditure on gross capital formation also had an adverse effect on the GDP growth. The investment activity itself fell by 4.8% in Q2 year-on-year. The domestic consumption, especially the household consumption, which decreased by 7.6% year-on-year also shared in the GDP decrease. The economic downturn was also very substantial in the European Union. Year-on-year decline amounted to 13.9, the GDP fell by 11.4% quarter-on-quarter. more

INTERNATIONAL TRADE PRICE INDICES DEVELOPMENT IN THE Q2 2020

In the Q2 2020, compared to the Q1 2020, export prices increased by 3.9% and import prices by 1.7%. The terms of trade reached the value of 102.2%. In the year-on-year (y-o-y) comparison, export prices increased by 2.6%, import prices decreased by 0.5%, and the terms of trade reached the value of 103.1% in the Q2 2020. more

THIS YEAR, CZECH EXPORTERS WILL ONCE AGAIN HELP BOOST THE ECONOMY

2015 was an exceptional year for the Czech economy. In terms of the year-on-year real GDP change, the economy grew by 4.3%, the fastest since 2007. Last year thus defi nitely surpassed the pre-crisis economic level. This year, the growth of the economy will slow down, mainly because of the year-on-year decline in the supply of EU money. Nevertheless, the growth rate is expected to exceed 2%, enough for Czech fi rms and households to remain optimistic. While last year net exports added a negative sign to the growth of the Czech economy, this year the sign will be positive.

 

Full article you can find: https://issuu.com/ppagency/docs/db_aj_2017_web/14

INFLATION WILL INCREASE TO THE CNB’S 2 %TARGET IN 2017

The exchange rate fl oor at 27 CZK/EUR adopted by the Czech National Bank in November 2013 has prevented defl ation to emerge and has been instrumental to a subsequent strong economic growth. However, domestic infl ation has remained low until now due to persistent fall of producer prices abroad partly related to the last year’s drop in global commodity prices. Infl ation will increase to the central bank 2% target during 2017. Therefore, a need to maintain expansionary monetary conditions at least to the current extent persists. The Czech National Bank will not therefore discontinue the use of the exchange rate as a monetary policy instrument before 2017. This article describes developments in the Czech economy from the central bank’s perspective, including the outlook for the next two years.

 

Full article you can find: https://issuu.com/ppagency/docs/db_aj_2017_web/12

CZECHINVEST MEDIATED INVESTMENT PROJECTS WORTH CZK 45 BILLION IN 2015

In 2015, CzechInvest Agency mediated 106 domestic and foreign investment projects. As a result, nearly CZK 45 billion will fl ow into the country and 14,040 new jobs will be created when completed. Of this number, 2,500 projects will be located in the Moravia-Silesia and Ústí Regions, areas affl  icted by high unemployment on a long-term basis. However, attracting investors to the country is being greatly hampered by the reduced investment support introduced in 2014 by a European Commission regulation. In 2015, CzechInvest Agency mediated 106 domestic and foreign investment projects. As a result, nearly CZK 45 billion will fl ow into the country and 14,040 new jobs will be created when completed. Of this number, 2,500 projects will be located in the Moravia-Silesia and Ústí Regions, areas affl  icted by high unemployment on a long-term basis. However, attracting investors to the country is being greatly hampered by the reduced investment support introduced in 2014 by a European Commission regulation.

Full article you can find: https://issuu.com/ppagency/docs/db_aj_2017_web/17