Czech Rep. Economic Outlook
June 7, 2022Revised national accounts data confirmed that year-on-year growth sped up in Q1, boosted by stronger capital spending and robust private consumption amid the easing of Covid-19 restrictions. Momentum is seemingly weakening in the second quarter, however. Spiking inflation in April and plummeting consumer sentiment in April and May suggest household spending is being weighed down. That said, the PMI readings for the first two months of Q2 signaled healthy expansions in the manufacturing sector, while rising business confidence in the same period hints at solid investment activity. Meanwhile, in mid-May the government unveiled a plan to beef up gas reserves amid the Ukraine war, while it is preparing a blueprint for businesses to save on energy consumption. Moreover, the cabinet recently approved a further hike in pensions to cushion retired people from the effects of surging inflation.
Czech Republic Economic GrowthThe pace of GDP growth should cool considerably this year, as the spillover effects of the war in Ukraine and rampant inflation weigh on activity. That said, the removal of Covid-19 restrictions, EU fund inflows, a tight labor market and accumulated savings should support growth. The prolongation of the Ukraine war and supply bottlenecks pose downside risks. FocusEconomics analysts see GDP expanding 2.0% in 2022, which is down 0.1 percentage points from last month’s forecast, and 2.9% in 2023.
Czech Republic Economy Data
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Czech Republic Facts
|Bond Yield||1.64||-1.85 %||Dec 31|
|Exchange Rate||22.76||-0.66 %||Dec 30|
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Czech Republic Economic News
February 2, 2023
At its 2 February meeting, the Board of the Czech National Bank (CNB) left the two-week repo rate unchanged at 7.00%.
February 1, 2023
The S&P Global Manufacturing Purchasing Managers' Index (PMI) rose from 42.6 in December to 44.6 in January.
January 31, 2023
The economy expanded 0.4% in seasonally adjusted year-on-year terms in Q4, following Q3’s 1.5% increase.
January 25, 2023
The economic sentiment indicator, published by the Czech Statistical Office (CSO), rose to 92.0 in January from 89.7 in December. Consumer sentiment increased in January, with the index rising to 82.9 from 75.5 in December.
January 16, 2023
Inflation came in at 15.8% in December, which was down from November’s 16.2%.