Encouraging economic growth results. Price hikes expected in the summer. Interest rate cuts on mortgage loans. Unemployment rate drops due to seasonal work. Apple Computer to open shop in Czech Republic. Czech Republic benefits from EU membership.
Encouraging economic growth results
The Czech economy grew by 4.4 percent year on year according to figures for the first quarter of the year, a result that economists are attributing to growing foreign trade and lower government consumption. According to the Czech Statistical Office the Czech economy is currently growing faster than in Poland and Hungary, but is still slower than Slovakia, with a figure of 5.1 percent. GDP growth this year is again expected to exceed four percent. The only drawback could be household consumption which economists say has been surprisingly low in spite of low inflation and relatively strong growth in real wages.
Price hikes expected in the summer
Interest rate cuts on mortgage loans
Three leading banks in the Czech Republic, CSOB, Raiffeisenbank and Hypotecni banka are again cutting interest rates on mortgage loans, in reaction to developments on the market, triggered by the central bank's surprise interest rate cut to an all-time low at the end of April. The cut particularly concerns new mortgages with fixed interest for three and five years.
Unemployment rate drops due to seasonal work
Apple Computer to open shop in Czech Republic
Czech Republic benefits from EU membership
Just over a year after joining the EU, the Czech Republic allegedly gets more from EU finds than it contributes. According to unofficial European Commission estimates, the Czech Republic contributed 554 million euros to the EU budget and received 798 million euros between May and December of 2004. The Czech Republic's position as a net recipient will be further consolidated this year as direct payments to Czech farmers will rise from last year's 25 percent of the level in the old EU countries to 30 percent. Between 2007 and 2013 the Czech Republic will be among the countries whose revenues from the EU budget will far exceed its contributions, with the difference estimated at 3.26 percent of GDP.