Economic policy | Council on Czech Competitiveness

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.

Show subcategories ▾

Spotlight issue

22nd July 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Orders are growing but components for production are missing

In May, industrial production fell more than expected month-on-month after the previous expansion. The reason is the limited supply of production components. The year-on-year comparison is still strongly influenced by last year's slump. Weaker industrial production was also reflected in a reduction of the foreign trade surplus. On the other hand, construction grew slightly in May. From the financial market point of view, production data surprised negatively; however, this should not affect the expected further tightening of monetary policy.

16th July 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Inflation is still running faster

Inflation remained at higher levels in June, slightly above market estimates and the CNB forecast. The main reason for higher inflation is core prices excluding food and energy. Overall, the surprise is small and implies a continuation of the CNB's willingness to further tighten monetary policy in the near future.

1st July 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Slower inflation will not discourage the CNB from raising rates

The decline in car production indicates a slight month-on-month decline in industrial production in May. In the same month, on the other hand, due to the easing of epidemic measures, we expect an accelerated expansion of retail sales. In the case of consumer prices in June, we expect an acceleration in month-on-month growth after an unexpectedly small increase in May. However, the effect of last year's higher base effect should lead to a further decline in the annual inflation rate slightly below the CNB forecast. Such a development should not discourage the intention to continue raising interest rates.