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

22nd July 2020 / Economic policy / Macroeconomic Indicators, Economic Growth

Despite a slight recovery in the Czech economy, the outlook remains uncertain

The Czech economy improved slightly in May but still lags behind the pre-crisis level of economic activity. Despite a month-on-month increase of more than 10%, industrial production is about a quarter lower. Of the industries, the automotive industry is currently the worst performing. Unfortunately, the fall in new orders by almost 35% in May does not give much optimism to the future. Currently civil engineering, whose production increased 1.2%, cannot complain about demand. In building construction, on the other hand, production decreased 11%. Despite weak demand from the domestic and foreign economies, however, unemployment in the Czech Republic remains low for the time being, at 3.7% in June, according to the Ministry of Labour and Social Affairs. In our opinion, the main reason is the Antivirus programme.

21st July 2020 / Economic policy / Macroeconomic Indicators, Economic Growth

EU summit: A historic deal reached

A marathon negotiation has resulted in an agreement on the EU budget and recovery fund. It is a significant step of solidarity and integration, but the hard-fought negotiations show that this provides no guarantee of unity moving forward and it is unclear how much political porcelain has been smashed for good.

17th July 2020 / Economic policy / Transport, Infrastructure and Tourism

AmCham CZ: Return to Bohemia and Moravia

Covid has had and likely will have a devastating short-term impact on the Czech tourism industry. The tourist sector depends on foreign guests for a large share of its income. This is particularly true of Prague. The domestic tourism market should revive this summer, although decreased family incomes– or fears of decreased incomes– may result in less spending and shorter stays through the winter ski season.