Czech economy may take 5 years to recover: experts
After experiencing the worst state deficit in history, current data suggests that the Czech Republic will need 5 years to recover its losses, Petr Holub reports for Seznam. According to the Český statistický úřad (Czech Statistical Office), the last quarter of 2020 saw a contraction of 5% year on year, mainly because of the second lockdown introduced in October. The ČSÚ notes that the most negatively impacted sectors were trade, transport, restaurants and hotels, all experiencing big losses. “The year-on-year decline was mostly due to the steep decline in household consumption expenditure,” they said. According to Eurostat, what saved the Czech Republic from entering a complete economic apocalypse was the foreign demand for local products, keeping the country’s losses atContinue Reading
Banking heads are saying apartment prices should calm down in 2021
ČSOB Group believes that apartment prices will likely correct 10% this year, giving a much-needed cool-off to Czech Republic’s red-hot real estate market. Jan Sadil, on ČSOB’s Board of Directors, told Aktualne that 2020’s real estate rally was largely due to record low interest rates which have been “basically in freefall since April.” 2020 saw a record number of mortgages given out by Czech banks, surpassing its previous record by 38%, while the average monthly mortgage payment decreased by CZK 800. Financial institutions provided over CZK 315 billion in housing loans. Jiří Feix, CEO of Hypoteční banka, said that the economic fallout from the COVID-19 restrictions made many people want to protect their savings by dumping them into the safeContinue Reading
Czechs Experience the Highest Inflation Rate in Eight Years
According to the Czech Statistical Office, the Czech Republic experienced the highest inflation rate seen in the last eight years. The raised prices on groceries and housing bills are some of the factors which influenced this year’s index. Consumer prices increased on average by 3.2 percent last year, which is the highest increase since 2012. The current inflation rate is even higher than the last year’s one – 2.8 percent. “This was the highest average annual inflation rate since 2012. Prices of goods in total and prices of services rose by 3.2 percent last year,” Pavla Šedivá, the Head of the CZSO Consumer Price Statistics Department, stated. December’s usual increase in prices slowed down for the fifth time in aContinue Reading
