Despite the Czech government having no target date for adoption of the common European currency, an increasing number of Czech companies are using the Euro among themselves. According to data released by the Czech Chamber of Commerce, more than a fifth of all payments to domestic suppliers are now carried out in euros.
Three Czech companies have made it into the annual list of Europe’s fastest-growing companies, put together by the Financial Times. It lists 1,000 companies that achieved the highest compound annual growth rate in revenue between 2014 and 2017 of at least of 37.7 per cent, compared with 34.6 per cent last year.
Foreign and internal economic factors will cause the Czech exports sector to lose its breath in the second quarter of 2019, at least according to an export prediction method produced by the Exporter Association and Raiffeisen Bank. Authors of the study say that the under saturated labour market in the Czech Republic has forced many companies to delay their deliveries and thus hindered potential orders from abroad.
Exports from the Czech Republic are likely to slow down in the next
quarter, the Czech News Agency reported on Sunday, citing the Export Index
put together by Raiffeisenbank and the Association of Exporters.
Among the main factors behind the negative development is the slowdown of German economy, uncertainty regarding Brexit and the threat of US President Donald Trump to impose a 25 percent tax on European cars.
Exports from the Czech Republic increased by 2 percent year-on-year in December to 316.1 billion crowns.
The Czech economy grew 2.8 percent year on year in the final quarter of 2018, above market expectations, revised data released on Friday by the Czech Statistical Office show. Analysts said it sent a positive signal that domestic growth remains sold despite a downturn in the Eurozone, and in particular Germany, the Czech Republic’s main export market.
The amount of property investment in the Czech Republic went down by EUR
2.62 billion in 2018, a cut back of 30 percent compared to the previous
year, a study by consultancy company Colliers International says.
Transactions also decreased by 27 percent. According to the authors of the
study this is a consequence of the low amount of quality property
investments currently on offer.
Colliers International says it expects this year’s investment rate to remain largely the same as in 2018.
If US President Donald Trump were to impose tariffs on European car makers,
the Czech economy would suffer a loss of approximately 26 billion crowns
and an estimated 25,000 people would lose their jobs, which is 0,5 percent
of all employees.
The figures, cited by the news site ihned, were released by the Vienna Institute of Economic Studies. According to an assessment by the Czech Trade and Industry Ministry tariffs could hit Czech exports to the US to the tune of 750 million euros or 20 billion crowns.
The possible impact of a trade war between Europe and the US is expected to dominate talks between US President Donald Trump and Czech Prime Minister Andrej Babiš at the White House on March 7th.
The Anti-Monopoly Office has fined the food chains Billa and Penny Market
from the REWE group 164 million crowns for abusing their dominant position
on the market.
Both chains reportedly requested a special fee from their suppliers for buying their products, which is banned by the law. The decision is legally binding and both food chains have accepted it.
The Constitutional Court has rejected a complaint against a ban on
billboards by Czech motorways filed by a group of 17 senators. Speaking for
the group, senator Václav Chaloupek said that the prohibition, which also
applies to first class roads, violated legal certainty and a ban on
retroactivity. The petitioners also argued that it contravened the right to
do business and the international protection of investments.
The court, which had been considering the matter since 2017, said that the billboards ban could be justified on the grounds of public interest, safety and environmental concerns.
US company Apple launched its Apple Pay service in the Czech Republic on
Tuesday. The contact free system, which is linked to payment cards, allows
people to use their Apple mobiles and watches to make payments.
Google Pay, a similar product, was already available in this country for users of phones and watches using the Android operating system.