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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2018 European Semester Winter Package: The Czech Republic’s investment outlook is buoyant
The Czech Republic has made limited progress in addressing the long-term sustainability of public finances. Some progress has been made in improving the anti-corruption and public procurement frameworks and in streamlining procedures for granting building permits. The range of e-government services has expanded and the quality of R&D has slightly improved. Some progress has also been observed in fostering employment of under-represented groups, 2018 European Semester Winter Package report says. The investment outlook is favourable, though.
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Despite strong wages, inflation eased further
Average wages in the last quarter of 2017 accelerated massively on the back of an increase of salaries in the public sector, but the impact on inflation is so far limited. Core inflation eased due to strong base effects. Headline inflation is thus set to decrease to 2%. Monthly data from the real economy are set to confirm the sound dynamics of the economy at the beginning of the year, Komerční banka says.
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AmCham CZ: Trump Administration considers steel and aluminum tariffs
The US government is considering imposing tariffs of 25% on steel and 10% on aluminum imports, and the European Union announced it is prepared to respond with tariffs on US imports with the same monetary value as EU exports of steel and aluminum. Other countries, including the largest steel and aluminum exporter to the US, Canada, have also declared their intention to reciprocate. China, the main target of the tariff, has not reacted explicitly.
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