Economic policy / Macroeconomic Indicators, Economic Growth
This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.
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AmCham CZ 2017 Prosperity Index: Doing well, and positioned to do better in the future
The Prosperity Index is a tool for measuring prosperity and identifying areas of public policy which could increase prosperity. Indicators show that the country has made steady progress in increasing its current prosperity, is strongly positioned for future prosperity, and is at the head of the EU in spreading prosperity across the population. The attachment contains the indicators, and some conclusions about what areas the next government should address.
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ING Bank Czech Republic: CNB Review: The May rate hike is still on the table
The Czech National Bank remained on hold today as expected. The neutral tone of Governor Rusnok’s press conference has been an outlier within the realm of the dovish bias of central banks globally. A CNB hike in May, when the new forecast is presented, still remains on the cards if the data stabilizes and Czech koruna remains soft, ING Bank Czech Republic writes.
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CNB to postpone hike amid Brexit chaos
While a strong domestic economic performance calls for a hike in March, the uncertainty surrounding the external environment is likely to prevail, leaving the CNB board in wait-and-see mode. We still believe the CNB will deliver two hikes this year, but we will have to wait for the Brexit situation to calm down and for stronger signals regarding a recovery in Germany.
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ING Bank Czech Republic: Czech GDP figure better than expected in 4Q18, though sending mixed signals
Czech economic growth was stronger than expected in 4Q18, mainly due to stronger exports and helped by government consumption. On the other hand, household consumption disappointed, which brings some uncertainty to the outlook. We expect GDP growth to decelerate to close to 2.5% this year, after 3% growth in 2018.
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