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.

Spotlight issue

25th January 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


Higher pensions and lower taxes to boost consumption

At the turn of the year, two government measures came into force to help combat the coronavirus crisis and boost household consumption. The measures consisted of a one-time payment to all old-age, disability and survivors’ pensioners and the elimination of super-gross wage and related tax adjustments. This study shows that both of these measures can have a strong impact on household consumption due to their widespread effect. According to our calculations, higher pensions should lead to a temporary increase in household consumption of almost 2%, and in the case of the tax reductions, to a sustainable increase in consumption of up to 3.4%. But given the high degree of uncertainty and the closure of the economy, the current situation might hinder consumer spending in terms of either total expenditure and/or amount spent over time.
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25th January 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


Confidence in Czech Republic slips again in January

Economic confidence deteriorated again in January in the Czech Republic as a result of stricter measures against Covid-19. Household confidence and retail sales have been impacted the most, while industrial confidence broadly stagnated and remains close to pre-pandemic levels
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14th January 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


Czech retail sales were hit hard by the closure of shops

The closure of shops brought a significant drop in November retail sales. Sales in clothing and footwear stores decreased 78% year-on-year. However, the food segment did not escape the declines, either, and car sales also fell sharply. The easing of restrictive measures in December gives hope that the December figure could turn out better.
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Members of the American Chamber of Commerce in the Czech Republic