The price of flats in the Czech Republic is overinflated by 15 to 20
percent, according to the Czech National Bank. However, the bank board has
not changed its recommendations for mortgage lending. The forecast is that
the growth in real estate prices will slow in the coming months.
According to Deloitte, the price of an apartment in the Czech Republic rose to CZK 60,700 per square meter this year. An apartment with an area of 70 meters is selling for 4.2 million on average. In the large cities, especially Prague and Brno, prices are significantly higher.
Czech economic growth in the 3rd quarter has slowed to 2.5 percent
year-on-year, according to data released by the Czech Statistics Office.
Compared to the 2nd quarter GDP rose by 0.4 percent.
Analysts say this confirms the predicted slow-down in economic growth, although compared to the situation in Germany, the Czech Republic’s main export destination, the Czech figures are still viewed as positive.
Economic growth in 2018 reached 2.9 percent and the prediction for this year is 2.5 percent.
The number of ATM machines in the Czech Republic increased in the first
half of 2019 to 5461, according to the Bank Card Association. With 471 ATM
machines per one million users, the Czech Republic is still lagging behind
the EU average of 841.
Czechs withdrew CZK 46.8 million in 2018, which is 15 million less than in the previous year. The number of cards issued increased by 430,000 to 12.24 million.
The country’s first ATM machine was unveiled 30 years ago at a branch of the then Czech State Savings Bank on Wenceslas Square.
The Australian mining company European Metals Holdings (EMH) Limited has
reached a conditional agreement with the Czech energy company ČEZ Group
regarding a strategic partnership as well as large investment into a
lithium mining project around Cínovec in the North West of the country,
the Czech News Agency reports quoting a Wednesday statement by EMH. If the
agreement passes a due diligence check and is approved by shareholders it
will mean that ČEZ will pay EUR 34.06 million to receive a 51 percent
share in Geodet, a subsidiary of EMH, which possesses the rights to mine in
Lithium, a key component of electric car batteries, is sometimes referred to as the “metal of the future”. The Czech Republic is estimated to possess 3 percent of the world’s lithium reserves and the deposit around Cínovec is the largest in Europe.
The question of who owned the country’s lithium reserves was one of the key issues in the last general election in the Czech Republic. The Czech government is the majority owner of ČEZ.
The Czech government has followed the example of other European countries in approving a digital tax on Internet giants such as Facebook, Google, Amazon and Apple. The proposed 7 percent tax on services provided in the Czech Republic should bring in approximately 5 billion crowns of additional revenue a year.
The EU has given final approval to a proposal that will allow member states
that have a problem with carousel tax fraud to apply a generalized reversal
of VAT liability.
This is something Czech Prime Minister Andrej Babiš has fought for for four and a half years on the argument that use of reverse charge could save the country around 80 billion crowns lost every year in unpaid VAT.
However Finance Minister Alena Schillerová said on Friday that it will take almost a year to get the respective legislation in place so that the ministry can introduce a generalized reversal of VAT liability in this country.
The EU member states who choose to do so will be able to use the generalized reverse charge mechanism only for domestic supplies of goods and services above a threshold of 17, 500 euros (around 450,000 crowns) per transaction and only up until June 30, 2022, when the outcome of the exemption will be reviewed.
The Czech governing coalition pushed a tax package through the lower house on Wednesday that will increase the price of tobacco, hard liquor and gambling as well as levelling a one-off tax on insurer’s reserves. The opposition, which vehemently opposed the effort, has slammed the ruling coalition for breaking its promise not to raise taxes.
The European Commission on Thursday revised its outlook for Czech economic
growth for this year. In the newly released macro-economic forecast it sees
the country’s gross domestic product growth falling to 2.5 percent.
The report expects growth next year to reach 2.2 percent. Earlier this year it predicted a figure of 2.5 percent for 2020.
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