Competitiveness / Macroeconomic Indicators, Economic Growth

This section feature research, opinion and progress reports on how the Czech Republic compares to other EU countries economically. It includes analysis of international rankings such as the WEF and World Bank.

Spotlight issue

17th March 2020 / Competitiveness / Macroeconomic Indicators, Economic Growth


CNB cuts and is ready to intervene EUR/CZK heading to 28.00

The CNB delivered a 50bp emergency rate cut today. This makes the already under pressure CZK more vulnerable as the its key anchor (the yield advantage) is now being taken away. CNB FX interventions are now a question of when rather than if. Should CZK see another abrupt move lower, we expect the CNB to step in around the 28.00 level (the first pain threshold level, in our view). This could happen this week. Yet this will not be a firm ceiling on EUR/CZK, with intervention having a smoothing rather than firming function. This means the EUR/CZK could trade meaningfully above 28.00 should global risk assets remain under pressure.
View more

27th February 2020 / Competitiveness / Macroeconomic Indicators, Economic Growth


MinFin activity is significantly lower year-on-year

Issuance activity: MinFin is scheduled to auction CZK5bn in a five-year bond and CZK3bn in a seven-year bond today. The shorter bond recorded solid demand (b/c 2.6) in its first auction two weeks ago. Since then the yield has decreased slightly, but in ASW terms the bond is cheaper. At the same time, the low supply of shorter maturities in recent years supports great market interest. On the other hand, the longer bond probably has the last auction ahead, which is also reflected in falling demand. Thus, MinFin has exhausted its current issues in this maturity segment. For March, MinFin plans four auctions including a new 11-year issue in a maximum volume of CZK15.5bn. Despite this rich offer of new bonds, MinFin activity is significantly lower compared with the first quarter of last year.
View more

14th February 2020 / Competitiveness / Macroeconomic Indicators, Economic Growth


Czech Republic sees weaker growth and higher inflation

The Czech economy slowed down more than expected in 4Q19 but inflation surpassed market estimates mainly due to stronger than expected food prices
View more

Members of the American Chamber of Commerce in the Czech Republic