Analysts believe Czech industry could reach double digit growth in 2021
Despite problems associated with deliveries of raw materials and components, analysts questioned by the Czech News Agency agree that Czech industry is doing well and could reach double digit growth this year.
According to the Czech Statistics Agency, Czech industry grew year-on-year by 7 percent, down from the 11.1 percent figure registered in June.
A Raiffeisenbank analyst, questioned by the Czech News Agency, said that the July result is actually positive given the current supply chain conditions where every lorry delivering goods is being fought for. However, he highlighted that the largest contributors to the positive growth statistic are sectors that were hit particularly hard by the fallout of the coronavirus crisis last year. This, he said, means that their year-on-year numbers have a particularly low benchmark.
CSOB Analyst Petr Dufek agreed that growth is being hindered by complications in international logistics, the lack of certain components and the associated surge in prices. Nevertheless, he also believes that Czech industry is currently in a solid condition.
Deloitte Analyst David Marek highlighted that July saw a 11.6 percent rise in the volume of new contracts, leaving him optimistic about growth prospects for the next several months.
Analyst Radomír Jáč from Generali Investments said he expects Czech industry to grow somewhere just above 11 percent. He believes the sector will benefit from the large volume of contracts and the statistical effect of the low benchmark set out last year – which saw Czech industry contract by 7.2 percent.
Nevertheless, the Generali Investments analyst echoed the warnings of statisticians by saying that logistical problems could lead to significant fluctuations in production and therefore slow down growth particularly in the automobile sector and associated industries.