Czech Rep. Economic Outlook
October 30, 2018The economy appeared to shift into higher gear in the third quarter, following relatively timid growth in the first half of the year weighed on by a disappointing performance of the external sector. Although industrial output cooled markedly in August from the double-digit annual growth logged in July, largely due to a contraction in vehicle manufacturing, it is likely that Q3’s average growth will exceed that of H1—hinting at more positive operating conditions of the secondary sector. Similarly, on the demand side, retail sales slowed in August from an over one-year high expansion in July; nevertheless, the two-month average remained well above that logged in H1. This, alongside historically-low unemployment, over-decade high wage growth and consumer confidence at near-record highs point to strong private consumption in the third quarter. The latest survey-based data has also been upbeat, with business confidence remaining elevated and consumers turning more optimistic in October, providing an early indication that robust momentum continued into the fourth quarter.
Czech Republic Economic GrowthGrowth is expected to moderate next year although it should remain strong as healthy household spending, buttressed by brisk wage gains and a labor market approaching full employment, underpins the expansion. In addition, planned fiscal stimulus, which includes increases in public-sector salaries and pensions as well as an infrastructure investment push, will lend further support to economic activity. The main downside risk to the outlook stems from escalating global trade conflicts, which could impact the country’s export-oriented industrial base. Met the why particular Consensus Forecast panelists see GDP growing 3.0% in 2019, which is unchanged from last month’s projection, and 2.6% in 2020.
Czech Republic Economy Data
5 years of Czech Republic economic forecasts for more than 30 economic indicators.
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Czech Republic Facts
|Bond Yield||2.11||-1.85 %||Nov 15|
|Exchange Rate||22.99||-0.66 %||Nov 15|
|Stock Market||1,081||-0.11 %||Nov 15|
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Czech Republic Economic News
November 14, 2018
Annual GDP growth moderated from 2.4% in the second quarter to a near-two year low of 2.3% in the third quarter in seasonally- and price-adjusted terms, according to preliminary data released by the Czech Statistical Office (CSO) on 14 November.
November 9, 2018
Consumer prices rose 0.4% in October from the previous month, contrasting September’s 0.3% drop.
November 6, 2018
Industrial production fell 0.9% year-on-year in September, contrasting August’s 1.9% increase.
November 1, 2018
At its 1 November meeting, the Bank Board of the Czech National Bank (CNB) decided to raise the two-week repo rate by 25 basis points to 1.75%, the fourth consecutive rate hike and a move widely expected by the market.
October 24, 2018
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), climbed from 99.6 in September to 99.8 in October, the third successive monthly rise.