News
Inflation peaks close to 10%
At the beginning of the year, inflation accelerated to 9.9% yoy. This was slightly above market and CNB expectations, but fears of a much higher price growth did not materialise. According to our preliminary estimate, core inflation, on the other hand, is slightly lower than expected, which reduces the need for further tightening of monetary policy. Nevertheless, due to concerns about inflationary expectations and the pass-through of higher energy prices into other items in the consumer basket, we expect a slight increase in the CNB's main interest rate at the next meeting.
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AmCham Manufacturer's Council: "We see the need and we want to change how we do business, but it will be almost impossible to achieve the necessary change unless governments feel the same."
For decades, the engineering and manufacturing skills of the Czech nation have been the country's greatest asset.
Economic turmoil also affecting transfer prices
Inflation is one of the main economic issues for 2022. The impact of high input prices and disrupted supply chains are other factors businesses must cope with. But there are also other adverse factors. The slowing economy has also revealed new issues in the area of transfer pricing.
Demand for warehouses in the Czech Republic is breaking records. Developers are responding with extensive construction
Clients' interested in new industrial premises in the Czech Republic had very little to choose from last year. Thanks to record demand, which reached a record 2.39 million sq m in gross terms for the whole year, vacancy rates fell to 1.63%, a historic low. The result was also affected by a lower volume of completed industrial properties, mainly due to the impact of anti-pandemic measures. However, this changed at the end of the year when a record 800,000 sq m of industrial space was under construction. The urgent need to meet tenants' enormous demand is also evidenced by the fact that the share of speculative development has once again increased after a longer period of inactivity.
Strategic Directions for Czech Economic Policy
- Transition to High-Tech Manufacturing and Exports
- The City Campus as Idea Factory
- Government Programs and Processes That Drive Innovation
- Government as a Competitive Advantage, including Digitization
Advocacy Priorities for 2023
Technology, People, Infrastructure
Actions Recommended in Areas:
1. Establishing Policy Objectives for Research.
2. Research Investment and Cooperation. Big Bets (Key Technology Projects).
3. Establishing Databases for Tracking Public Policy Outcomes.
4. Public Procurement as an Innovation Tool.
5. Immigration of STEM Talents.
6. Digitization of Immigration.
7. Adult Reskilling and Upskilling.
8. Digitization of Land Use.
9. Infrastructure Development, including Technology Parks.
Read the documents in English and Czech.
Policy pipeline
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.
