The German Central Bank has published a prediction on the country’s expected economic growth for 2019. It lowered its expectations from 1.6 percent to 0.6 percent. The Czech manufacturing sector is very dependent on German economic strength and Germany is also the Czech Republic’s largest trading partner. However, analysts questioned by the Czech News Agency say that changes in the forecast were expected and will not affect the Czech economy.
The lower house of Parliament on Friday approved changes to the law on
electronic cash registers. The MPs voted in favour of exempting certain
social services from the duty to report their earnings electronically.
Despite protests from the opposition, the ruling coalition of ANO and Social Democrats also pushed through extending the EET’s online reporting requirements to other professions, including doctors, artisans and tradesmen.
Prime Minister Andrej Babiš introduced the EET in 2016, when he was the finance minister, to counter the grey economy and tax fraud.
Prague inhabitants with an average salary would have to work for nearly fifteen years for a flat of approximately seventy square metres, if they didn’t have any other expenses, suggests a study by the developer company Central group. Just a year ago, Praguers needed to work less than 14 years to acquire a flat, while in 2014 it was less than ten years.
The possible introduction of a sector tax on banks in the Czech Republic would lead to a knock-on increase in the cost of financial products, according to an analysis conducted by the Centre for Economic and Market Analyses (CETA) published on Tuesday. This would mainly concern higher mortgage rates and more expensive loans for entrepreneurs, the study found.
The Czech Republic’s total debt amounted to CZK 2.34 trillion at the end
of the first quarter of 2019, up by CZK 161.5 billion in annual terms,
according to the Czech Credit Bureau (CRIF) database.
The volume of non-performing debt fell by CZK 4.1 billion to CZK 32.4 billion. The number of people who had problems making consumer debt payments fell 17 percent year on year. The number of people who failed to pay their housing loans fell by 16 percent.
The average amount of short-term debt “at risk” stood at almost CZK 98,000 at the end of the first quarter of 2019. This concerns debts in which three consecutive monthly instalments were not paid or were declared due by the creditor.
Czech state-controlled power utility ČEZ reportedly plans to sell its
assets in Romania and Turkey, in addition to a previously reported plans to
divest from Bulgaria.
ČEZ chief Daniel Beneš said in an interview with the business daily Hospodářské noviny that the group is also considering selling some assets in Poland. In total, the Prague-listed company hopes to get tens of billions of crowns from the sales.
Shareholders in ČEZ, which is 70 percent owned by the state, would vote on the new strategy at the annual general meeting on June 26, he told the daily.
Proceeds would be used to construct renewable energy assets and new nuclear units as well as to the modernize ČEZ’s distribution network, he said.
High energy expenditures are forcing nearly a quarter of Czechs to cut back on other types of spending, a recent survey conducted by the polling agency STEM revealed. However, other data shows that 68 percent of the population likes to rank up their heating to temperatures by up to 25 degrees, resulting in unnecessary costs.
A Finance Ministry proposal for next year’s budget, which is to be
debated by the government next week, sets next year’s deficit at 40
billion crowns, Prime Minister Andrej Babiš announced at a press
conference on Monday.
The draft budget forecasts state expenditures of 1.59 trillion crowns and revenues at 1.55 trillion crowns. According to Mr Babiš, the budget plan also envisages a hike in public sector wages and higher pensions. The first draft budget proposal is to be presented to the lower house on May 31.
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