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.

Spotlight issue

10th August 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


New programme period: one trillion Czech crowns and simpler procedures for applicants

At the end of June, the Czech Ministry for Regional Development held a conference entitled “Green and Digital Czechia? But What About People…”, at which it presented the main goals and investment opportunities encompassed within the EU funds for the following programme period of 2021–2027.
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10th August 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


Inflation in the Czech Republic accelerated again

The month-on-month rise in consumer prices was twice as fast as expected in July. The year-on-year inflation rate reached 3.4%, which is 0.4pp above the CNB forecast, and is heading for 4%. Above all, the prices of services are rising. Concerns about rising inflation expectations will lead the CNB to further raise interest rates. Uncertainty about price developments in the near term remains elevated.
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6th August 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


The CNB continues to tighten monetary policy

As expected, the central bank raised its key repo rate from 0.50% to 0.75% at its August meeting. Although the bank board discussed a 50bp hike, as proposed by the new CNB forecast, in the end it preferred a gradual normalisation of monetary policy. According to Governor Rusnok, the CNB should continue to pursue gradual normalisation for the rest of the year. While the CNB forecast calls for a repo rate of 1.50% at year-end, we expect 1.25% due to the cautious approach of central bankers. However, we already expect a repo rate of 2.25% for end-2022, while the CNB expects 2%. The difference is mainly our expectation of a stronger economic recovery, with a slightly weaker koruna.
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Members of the American Chamber of Commerce in the Czech Republic