Czech Rep. Economic Outlook
February 6, 2018The economy had a strong showing in 2017: Growth picked up pace in three consecutive quarters, and indicators suggest the momentum carried over into the final quarter. Industrial production and retail trade turned in positive results again in November, albeit moderating from the prior month. Furthermore, the manufacturing PMI continued climbing throughout the quarter, clocking a multi-year high in January. However, while consumer confidence improved in January, business confidence slipped. Politically, the sailing is less smooth. President Milos Zeman, an ally of Russian president Vladimir Putin, won a second term on 27 January; he is one of the few allies of Andrej Babiš, who has been prime minister since December. Babiš, who lost a no-confidence vote on 11 January, has been unable to garner majority backing to form a government. However, the Communist Party agreed to restart talks over possible support of a Babiš-government. The combination of Zeman and Babiš could, however, strain relations with the EU further as both men oppose further EU integration.
Czech Republic Economic GrowthOngoing political uncertainty is likely to drag on the economy in the short term. Moreover, Babis’ inability to form a government has derailed his plans to implement pro-growth economic policy in a timely manner. Despite the continued uncertainty, economic growth should remain solid this year. Household spending is expected to remain robust and drive growth, while fixed investment is also expected to remain strong. Panelists see GDP growing 3.4% in 2018, up 0.2 percentage points from last month’s projection, and 2.8% in 2019.
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||1.87||-1.85 %||Feb 20|
|Exchange Rate||20.52||-0.66 %||Feb 20|
|Stock Market||1,116||-0.11 %||Feb 20|
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Czech Republic Economic News
February 7, 2018
Industrial production in the Czech Republic expanded 2.7% year-on-year in December, down from November’s robust 8.5% increase.
February 2, 2018
At its first meeting of the new year, held on 1 February, the Czech National Bank (CNB) unanimously decided to increase the two-week repo rate by 25 basis points to 0.75%, and the Lombard rate by 50 basis points to 1.50%; the discount rate was, however, left unchanged at 0.05%.
February 1, 2018
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit remained at 58.8 points in January, matching the figure seen in the previous month.
January 24, 2018
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), slipped slightly in January owing to a drop in business confidence.
January 11, 2018
Consumer prices inched up 0.1% in December from the previous month, matching market expectations.