Economic policy
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
Economic dynamics did not slow at the beginning of the year
Today’s statistical reports surprise on the upside. Industrial production maintains strong dynamics; retail sales even accelerated, and construction statistics are booming. The figures show that the domestic economy began the new year on a high note. So far, the monthly statistics corroborate our view of strong GDP growth of 3.8% this year, Komerční banka says..
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Producer prices surprised with a marked drop
Production price indices recorded a surprising drop. Producer and agricultural prices have slumped in particular. On the other hand, construction prices continued moderate growth while prices of market services increased distinctively. Producer and agricultural prices thus added to the disappointment represented by February’s consumer inflation. Although we assume the central bank will continue to hike interest rates, it may be possible it will choose a time out in May given previous inflationary developments, according to Komerční banka.
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