According to the CZSO's preliminary estimate published today, the Czech economy strongly rebounded in 3Q. Domestic GDP grew 6.2% qoq, and its yoy decline thus slowed to 5.8%. Compared with market expectations, this was a slightly better result, as the analysts expected GDP to rise 5.0% qoq on average. The economy also performed better compared with our forecast, which expected 5.3% qoq growth. The Czech National Bank was much more pessimistic, as it predicted an increase in economic activity of only 2.8% in its latest forecast.

Substantial insights have emerged in recent weeks regarding what to expect from a forthcoming European Artificial Intelligence (AI) legislative proposal, due to be presented by the European Commission in early 2021.

The latest discussions confirmed that the regulation of this new technology relies on closely interlinked legislative initiatives, ranging from the new EU Data Strategy and the creation of a Single Data Market to the Commission's Green Deal plan to address climate and environmental challenges. The final objective is to ensure a sustainable digital economy and achieve the ambition of making the European AI regulatory framework a model for the rest of the world.

Optimism in key CRE industries and smaller metropolitan areas drives the sector

The Czech statistical office has released a preliminary estimate of 3Q GDP growth, which came in at 6.2% QoQ after an 8.7% fall in the second quarter. Markets expected weaker growth at around 5%, so a somewhat positive surprise. The second-wave of the Covid-19 pandemic will move the Czech economy to contract again in 4Q.