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
Production is weakening due to stifling components subcontracting
Industrial production accelerated its decline in February, negatively surprising analyst estimates. Orders are growing, but there are missing components for production and partial shortages of manpower. The foreign trade surplus fell in line with weaker industry. Unsurprisingly, construction remains subdued.
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A mixed economic picture in the Czech Republic
Industrial production fell by 2.6% YoY in February amid weak production of cars due to reduced semiconductor chip supplies. Retail sales fell by 3% YoY, but given the pandemic restrictions, this was not too bad a result.
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Czech confidence drops further in March
As another lockdown comes into force in the Czech Republic, household confidence plummeted in March to levels seen last November and are only slightly higher than they were during the first wave. Business confidence declined too, but mainly due to services. In general, it remains solidly above the lows of the first wave of the pandemic
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