Economic policy / Macroeconomic Indicators, Economic Growth
This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.
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Spotlight issue
Industry is growing, but missing components are putting on the brakes
Industrial production increased month-on-month, although missing components led to a further decline in car production. The decline in exports and the growth of imports unexpectedly dragged the foreign trade balance into a deficit in June. The construction industry stagnated month-on-month, and its production thus remained in solid growth year-on-year.
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New programme period: one trillion Czech crowns and simpler procedures for applicants
At the end of June, the Czech Ministry for Regional Development held a conference entitled “Green and Digital Czechia? But What About People…”, at which it presented the main goals and investment opportunities encompassed within the EU funds for the following programme period of 2021–2027.
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Inflation in the Czech Republic accelerated again
The month-on-month rise in consumer prices was twice as fast as expected in July. The year-on-year inflation rate reached 3.4%, which is 0.4pp above the CNB forecast, and is heading for 4%. Above all, the prices of services are rising. Concerns about rising inflation expectations will lead the CNB to further raise interest rates. Uncertainty about price developments in the near term remains elevated.
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