The Czech economy is expected to grow by 2.6 percent this year, following a
3 percent expansion in 2018, according to the latest forecast from
For the coming year, the European Commission foresees growth of 2.5 percent, again mainly fuelled by solid growth in household consumption, with investment growth expected to ‘normalise’.
Private consumption is likely to remain the main growth driver and should continue to benefit from swift growth in wages and pension incomes, and robust consumer confidence, the EC said.
The trade balance is set to deteriorate over the forecast horizon and detract from GDP growth in 2019, before turning neutral in 2020, the forecast says.
Unemployment in the Czech Republic stagnated at 2.6 percent this June after
decreasingly slightly over four consecutive months, the Labour Office
announced on Tuesday.
The number of jobseekers in June fell to 195,723, a drop of about 5,000 compared to May, while the number of vacancies rose to 342,510.
The Czech unemployment rate is at its lowest level since May 1997. In Prague, it stands at 1.9 percent.
Czech municipalities have become adept at managing their finances, suggests a study carried out by credit rating agency CRIF and cited by the news website iDnes.cz. The country’s local authorities as a whole have been in the black for the last eight years and no less than CZK 125 billion crowns lies in their collective bank accounts.
Czech state-run power group ČEZ has announced plans to sell its Bulgarian
assets to local investors Eurohold for 335 million euros, subject to
approval by regulatory authorities.
ČEZ entered the Bulgarian market in 2004. The prospective sale concerns seven of its local units.
Last February, a rumour that ČEZ might sell major Bulgarian assets to small firm called Inercom sparked protests over alleged corruption that led the Minister of Energy to resign.
The Czech Republic’s producer price inflation slowed in May after rising
the previous month, according to data released by the Czech Statistical
Office on Monday.
The producer price index rose 3.8 percent year on year in May, slower than 4.3 percent increase in April. The biggest increase was in ‘electricity, gas, steam and air conditioning’ prices, which rose by 8.6 percent annually in May.
Prices of ‘mining and quarrying’, and ‘food products, beverages and tobacco’ rose by 7.5 percent and 4.0 percent, respectively. Among the main industrial groupings, energy prices grew the most, rising 8.1 percent in annual terms.
Police raided a large-scale illegal cigarette factory in the Liberec region
at the weekend and detained a foreign national allegedly running it on
charges of tax evasion.
A spokesman for a special police unit for fighting organized crime (NCOZ) said agents had seized nine tons of raw tobacco in addition to equipment.
The accused planned to import machinery and several tons of raw tobacco to expand the illegal cigarette production line, NCOZ spokesman Jaroslav Ibehej said.
The state collected over one trillion crowns in taxes last year, which is
62 billion more than in the previous year, the Czech News Agency reported
According to the state’s final account, presented by the government in the Lower House of Parliament, some 727 billion crowns ended up in the state budget and 295 billion crowns were earmarked for regions and municipalities. Nearly 20 billion crowns went to the State Fund for Transport Infrastructure. Collection of VAT and personal income tax recorded the steepest growth in 2018.
The Czech Republic’s economic growth is expected to continue at a rate of around 2.5 percent, the International Monetary Fund predicted in a press release on Thursday. Inflation is expected to go down and unemployment levels will rise. The head of the organisation also warned of the large impact that American tolls on European products would have on the Czech economy.
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