Economic policy

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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Spotlight issue

4th October 2018 / Economic policy / Macroeconomic Indicators, Economic Growth

Czech manufacturing PMI at two-year low

The September manufacturing PMI declined further to 53.4, hitting the lowest level in the past two years. Still, this is in line with expectations that Czech industry growth will slow down towards 3% this year

1st October 2018 / Economic policy / Tax & Finance

IMF: International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots: A 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent.

According to a recent IMF working paper on tax avoidance, called International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots, a 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent. The authors believe that this estimate is larger than the consensus so far and the semi-elasticity has increased over time; a value of around 1.5 applies to the most recent years.

26th September 2018 / Economic policy / Macroeconomic Indicators, Economic Growth

ING Bank: Czech National Bank in Hiking Mode

As expected, the CNB delivered a 25bp hike on 26 September. However, the market already had high expectations (one additional hike this year and two more next year). As such, today’s press conference in which Governor Rusnok was non-committal disappointed slightly.