Czech firms’ losses incurred due to the sanctions levied by the European Union against the Russian Federation will possibly reach tens of billions of korunas in the short-term horizon and hundreds of billions in the long run.
Ukraine’s share in the Czech Republic’s international trade accounts for less than 1% while Russia has about 4.5%.
Czech economy will grow at the pace of around 3% in 2014, with contribution from foreign demand, loosened monetary terms and revitalised government investments.
The government should approve kurzarbeit (short work), as one of the anti-crisis measures, on its session in August, so that the norm gains effect from 2015.
Agricultural producers’ prices dropped 2.5% m/m in July 2014, while the prices of market services dropped 0.6%.
The Ministry of Foreign Affairs, in cooperation with the Ministry of Industry and Trade, will hold a working meeting with entrepreneurs in the Czernin Palace on August 21, focusing on the consequences of European Union’s sanctions against Russia and Russia’s reciprocal sanctions.
Czech economy no longer needs to be driven by foreign economies to generate solid year-on-year GDP growth of 2-3%.
A total of 280,000 new savings contracts for building purposes were made in H1 2014, according to data provided by building societies to the Czech Ministry of Finance.
At first sight, the development of prices in production does not bring any inflation pressures into the economy, according to ČSOB’s analyst Petr Dufek who added that this was despite the positive development of the Czech industry over the past year and the 2013 koruna devaluation.
Companies representing 10.1% of the industry in the Czech Republic predicted a growth in exports in next three months in July.