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
ING Bank Czech Republic: Housing credit on weak footing in December
The volume of new housing loans declined to the lowest level in two-and-a-half years, driven by stricter recommendations from the Czech National Bank and strong frontloading in the second half of last year.
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Eurozone: The best is now (firmly) behind us
Peak growth is now behind us and while there are still positive drivers that make it too soon to call the end of the expansion, growth in 2019 is likely to come out much lower than last year. We forecast 1.4% GDP growth in 2019 and 1.3% in 2020 but the risks are skewed to the downside. In these circumstances, the probability of an ECB rate hike is melting away
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Labour market remains tight despite unemployment increase in December
The result of external trade in November was a pleasant surprise, although for the entire year 2018 the trade balance will end up with a lower surplus than the year before. Labour market pressures did not let up at the end of the year. The higher share of unemployed in December was caused by seasonal effects, and the increasing number of vacancies shows that demand for labour remains strong.
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