Czech Rep. Economic Outlook
November 3, 2020A preliminary estimate revealed that the economy rebounded in Q3, following an unprecedented contraction in Q2 as the country felt the full brunt of lockdown measures. Although a detailed breakdown for Q3 is yet to be released, improving retail sales and consumer confidence hint at recovering household spending, while rebounding industrial production and business sentiment indicate stronger private sector activity. Moving to Q4, the picture is turning gloomier. Due to a sharp rise in new Covid-19 cases, the government declared a state of emergency and renewed strict containment measures in early October. The worsening health situation risks derailing the incipient recovery, as suggested by flagging business and consumer confidence in October. That said, the administration recently extended part of its short-term work scheme, and approved a relief plan for the hardest-hit businesses.
Czech Republic Economic GrowthAfter suffering a severe recession this year due to the Covid-19 blow, the economy is seen rebounding strongly next year as domestic and foreign demand recover, and fiscal and monetary measures provide further support. That said, key downside risks remain, including the prolongation of the health crisis and disrupted European automotive supply chains. FocusEconomics analysts see GDP expanding 4.5% in 2021, which is down 0.4 percentage points from last month’s forecast, and 4.0% in 2022.
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
May 7, 2021
Industrial production soared 14.9% year-on-year in working-day adjusted terms in March, which contrasted February’s 2.6% drop and benefited from an extremely low-base effect as March 2020 was the first month of the Covid-19 pandemic.
May 7, 2021
At its 6 May meeting, the Board of the Czech National Bank (CNB) unanimously decided to keep the two-week repo rate unchanged at 0.25%, in line with market expectations and marking the seventh consecutive hold.
Czech Republic: Manufacturing PMI signals strongest improvement in operating conditions in over three years in April
May 3, 2021
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 58.9 in April, up from March’s 58.0 and marking the highest reading since January 2018.
May 1, 2021
The economy shrank 2.1% on a seasonally-adjusted year-on-year basis in Q1 2021, amid another wave of Covid-19 infections which prompted the government to tighten restrictions.
April 26, 2021
The economic sentiment indicator, published by the Czech Statistical Office (CSO), jumped to 94.7 in April from 87.0 in March, logging the best print since March 2020. The business confidence index soared in April, coming in at 94.8, from March’s 87.7 reading.