Report Buyer: Critical Guidance to Czech Republic available in New EIU Report

PRLog (Press Release) - May 11, 2009 -
Report Buyer, the online destination for business intelligence for major industry sectors, has added a new EIU (Economist Intelligence Unit) country report which provides a complete guide to Czech Republic.

“Country Report Czech Republic April 2009”, available at http://www.reportbuyer.com/go/EIU01532 offers reviews and forecasts of the financial and political development in Czech Republic. According to the report, the centre-right coalition comprising the Civic Democratic Party (ODS), the Christian Democratic Union-Czechoslovak People's Party (KDU-CSL) and the Green Party recently lost a confidence vote that was initiated by the centre-left opposition, the Czech Social Democratic Party (CSSD). It is yet unclear whether there will be a reconfiguration of the parties in government, or whether an early election will be held. A reconfiguration would result in continued government ineffectiveness, whereas an early election could result in a stronger government.

The report’s outlook for the euro zone in 2009-10 is pessimistic. Based on this, as well as falling consumer and business confidence, it is expected that the Czech economy will contract by 3% in 2009, with a modest recovery expected in 2010. The Czech National Bank (CNB, the central bank) began to loosen monetary policy in August 2008. However, the CNB is likely to take a cautious approach to further rate cuts, owing to concerns about currency weakening. Inflation in 2008 was driven by increases in regulated prices and indirect taxes, but will face a sharp fall in 2009, as a result of lower import prices and weak domestic demand. Additionally, the current-account deficit is forecast to average 2.3% of GDP in 2009-10.

The monthly review provided in the report highlight recent financial and political activities and development within the country, including the following:
-   The Green Party's National Council which in March expelled four prominent party members, on the grounds that their dissent had damaged the organisation.
-   Parliament is due to vote in April on the cabinet's anti-crisis package, which includes various measures aimed at lowering the tax burden on the private sector in order to protect jobs.
-   The Czech economy grew by 0.2% year on year in the fourth quarter of 2008, owing to weak industrial sector performance, in response to a slump in external demand.
- The trade deficit was Kc15.3bn (US$765m) in October-December 2008, compared with a surplus of Kc17.9bn a year earlier.
-   The current account recorded a deficit of US$3bn in the fourth quarter of 2008, compared with a deficit of US$2.1bn a year earlier. Inflows of foreign direct investment (FDI) in 2008 reached US$10.9bn, exceeding the current-account deficit of US$6.6bn.
-   Consumer price inflation has continued to decline; it was 2% year on year in February, compared with 7.5% a year earlier.

“Country Report Czech Republic April 2009” is available from Report Buyer. For more information, go to:
http://www.reportbuyer.com/countries/europe/czech_republi...

Report Buyer product ID: EIU01532

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