2014 Macro EDP Czech Republic
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Czech exports to Ukraine dropped by 29% in February | Prague Monitor

Czech exports to Ukraine dropped by 29% in February | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

Czech Republic exports to Ukraine have dropped  by 28.8% in February of 2014 due to the Crimea crisis. Their exports to Russia have also decreased, though only be 0.4%. However, Czech exports to China, France, Germany, Poland, Austria, Slovakia, and Great Britain have spiked. Exports to Germany and Austria have increased by as much as a fifth, countering that of the drop of exports to Ukraine. More demand for Czech exports will cause supply to rise, lowering price levels and raising GDP.

 

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ING: More than a quarter of Czechs increase savings in 2013 | Prague Monitor

ING: More than a quarter of Czechs increase savings in 2013 | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

In 2013, Czech Republic ranked third in the world in consumer savings at 27%, though the number of Czechs who saved decreased. The reason why Czechs are saving more is because they are uncertain about future economic states. This causes the multiplier to decrease, which in turn causes GDP to decrease, slowing the economy.

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Interest rate on mortgage loans falls to record low | Prague Monitor

Interest rate on mortgage loans falls to record low | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

Interest rates in Czech Republic have dropped to a record low of 2.93%. A lower interest rate encourages more people to take out mortgage loans, which was evident in the increase of 6000 borrowers. This is stimulating the economy dramatically, as more Czechs are motivated to buy a home, which increases employment of construction workers and also the supply of houses. The low interest rate will lower price levels and increase real GDP.

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Economy for Manageres – CIAnews.eu

Economy for Manageres – CIAnews.eu | 2014 Macro EDP Czech Republic | Scoop.it
Trade unions want CZK 9,000 minimum wage by 2015 ,Economy, Business, News, Manager, Management
McKenna Emily Michelle's insight:

The current minimum wage in Czech Republic is 500 Czech Republic Crown. Recently, trade unions have proposed drastically raising the minimum wage to 9000 CZK by 2015, to help workers keep up financially with the growing economy. Increasing the minimum wage would improve living conditions, increase consumer optimism, raise demand, and stimulate the economy. If wages increase, it would allow people to have more purchasing power, raising the demand, reducing the unemployment, but also raising the price level. However, the short run supply would decrease to meet long run equilibrium, causing the GDP to return to its initial level and raising the price level. In the long run, an increase in minimum wage would only cause inflation.

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Radio Prague - Retail chains still relaying largely on cheap food imports

Radio Prague - Retail chains still relaying largely on cheap food imports | 2014 Macro EDP Czech Republic | Scoop.it
Data published by the Czech Statistics Office indicate that the choice of
food imports to the Czech Republic is still directed mainly by price, with
retail chains favouring competitive German, Polish and Slovak producers.
Higher quality but less affordable Czech products are often left lying on
the shelves.
McKenna Emily Michelle's insight:

Czechs' food consumption are largely imports from Germany, preferred due to their lower price. Czechs select food based on their price, and due to the economic crisis during 2010, Czechs cannot afford the high quality food they produce themselves. This causes a decrease in supply, leading to even higher prices and lower GDP. Poland follows a close second in exports to Czech Republic, while Slovakia ranks third. While exports from Poland and Slovakia have been slowing due to quality scandals, Germany's exports to Czech Republic have been steadily rising as of 2013.

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Radio Prague - Czech industrial output surges with recovery sucking in imports

Radio Prague - Czech industrial output surges with recovery sucking in imports | 2014 Macro EDP Czech Republic | Scoop.it
Czech industrial production is going from strength to strength and there
are now clear signs that bosses are recruiting seriously to cover their
ever expanding order books.
McKenna Emily Michelle's insight:

Czech Republic's industrial productions have increased by 6.7% in the past year, trying to meet a rising 19.9% international demand for Czech products. Domestic demand also rose in the past year, by 14.1%. These increases in demand are being met by increases in supply, supported by a 1.1% increase in employment. Jobs are increasing by 0.1%, and productivity is currently at 5.5%, while costs decreased by 1.8%. The output surplus has decreased from 13.6 billion last year to 2.8 billion as of April, 2014. These statistics reveal that the Czech Republic economy is developing steadily. Their long run aggregate supply has increased due to the increase in productivity; yet another sign of an expanding economy. The increasing supply and demand will continue to lower price levels and increase GDP, while more export demands and increases in jobs battle unemployment.

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FinMin: State debt grows to CZK 1,683bn in Q1 | Prague Monitor

FinMin: State debt grows to CZK 1,683bn in Q1 | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

Czech Republic is experiencing a drastic increase in their debt, from 100m CZK to 1683 CZK in a mere quarter in 2014. The per capita debt is currently 161,000 CZK. To counter this, Czech Republic is selling bonds rapidly to decrease the money supply, making the CZK appreciate, therefore reducing their debt. The government also should work towards reducing their borrowing.

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Analysts: Third VAT rate to influence inflation negligibly | Prague Monitor

Analysts: Third VAT rate to influence inflation negligibly | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

Czech Republic is currently debating whether or not to reduce  the Value Added Tax rate from 15% to 10%. A VAT is a sales tax that, in the long run, only affects the end consumer. Inflation is forecasted to rise to 2.3% in 2015, and the cut in VAT tax may reduce inflation by 0.1%. However, the cut in VAT tax will only occur on medicine, books, and baby diapers. The VAT cut may influence price levels of above items,  so retailers will not gain from the tax cut. The VAT tax cut will be more influential if the demand price elasticity is high. This means that price levels of goods necessary for life will not be affected by the VAT tax cut while regular goods will be highly affected. 

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Economy for Manageres – CIAnews.eu

Economy for Manageres – CIAnews.eu | 2014 Macro EDP Czech Republic | Scoop.it
FinMin: Czech GDP will grow 1.8% in 2014,Economy, Business, News, Manager, Management
McKenna Emily Michelle's insight:

The Czech Republican GDP is predicted to grow an average of 1.8% in 2014, 2.4% in 2015, 2.6% in 2016, and 2.5% in 2017. Because Czech Republic is a developed, industrialised economy, a GDP growth rate of between 2-3% is ideal.These GDP stats show that Czech Republic is on the right route in bring back their economy.

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Czech regard economic situation as best in three years | Prague Monitor

Czech regard economic situation as best in three years | Prague Monitor | 2014 Macro EDP Czech Republic | Scoop.it
McKenna Emily Michelle's insight:

According to polls done in March of 2014, Czechs feel more optimistically towards their economy in comparison to September of 2013. 23% of Czechs are optimistic about their personal financial situation in comparison to 17% in 2013. 12% of Czechs feel that their national economy will improve in comparison to 7% in 2013. 23% of Czechs fear losing their job, a drop from the 28% in 2013. However, more Czechs still feel that their economy is in a bad or neutral state as of 2014, as only 11% of Czechs believe that their economy is improving. Though the figures of optimism are rising, there's still a lot of work to do in Czech Republic on terms of stimulating the economy, spending, investment, and demand.

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