CEZ Group | AE: Weaker koruna will not reverse export slowdown

AE: Weaker koruna will not reverse export slowdown

31. 7. 2018

Weaker koruna will not reverse the deceleration of Czech export’s growth. The latest values of the advance Index Export indicator for five months in advance indicate seasonal recovery in comparison to the weak start of the year, but still show a significant slowdown in comparison to 2017.

(ČIA) Weaker koruna will not reverse the deceleration of Czech export’s growth. The latest values of the advance Index Export (IE) indicator for five months in advance indicate seasonal recovery in comparison to the weak start of the year, but still show a significant slowdown in comparison to 2017. This stems from a study by Raiffeisenbank and the Association of Exporters (AE). Weaker koruna and higher no. of working days help Czech export stay in red figures. Raiffeisenbank’s chief economist Helena Horská says that deteriorating outlook of the European economy, incl. Germany, concerns about the consequences of the global trade war and the saturated labour market in CR are factors against growth in CR. The outlook into Q4 2018 is strongly upsetting. Potential implementation of US tolls from September 2018 would affect export already by the end of Q3 2018.