All analysis from category Macro comment
Macro comment
CNB: A quiet Christmas
The probability of a change in interest rates at the last meeting of the CNB Bank Board was negligible. And this scenario played out exactly as expected. The CNB Bank Board left the base interest rate at 3.50%.
Macro comment
Unemployment in November: A slight increase
A long-standing advantage of the Czech economy is its macroeconomic stability, to which low unemployment also contributes. It remains among the lowest in Europe. However, it has been gradually increasing in recent years. In November, the number of job seekers rose to 341,311, the highest since March 2017. The unemployment rate reached 4.6 percent.
Macro comment
Industrial production in October: Treading water
Although the Czech economy has managed to accelerate its growth, industry is still treading water. In October, industrial production fell by 0.1 percent month-on-month but was up 1.1 percent year-on-year. The volume of orders increased slightly thanks to orders from abroad. On the other hand, employment in industry continues to decline.
Macro comment
Retail in October: Slightly sluggish growth in domestic demand
Domestic demand is the main pillar of current economic growth. Supported by wage growth and low unemployment, households returned to stores after the wave of inflation, and retail naturally benefited from this. However, domestic demand seems to have slowed down somewhat in recent months. In October, retail sales rose by 0.4 percent month-on-month, with year-on-year growth reaching only 2.8 percent.
Macro comment
Wages in Q3: Rapid growth continues
The current economic growth is primarily driven by strengthening domestic demand, which is supported by rising household incomes. The average gross wage increased by 7.1 percent year-on-year to CZK 48,295 in Q3. After adjusting for inflation, the average wage rose by 4.5 percent in real terms.
