Business News

Photo: European Commission

In this week's Business news: Central bank governor says the Czech Republic won't adopt the Euro before 2019; The OECD lowers the forecasted growth for the Czech GDP to -1.0 percent; The automomotive industry increased revenues by 7 percent last year; Google releases Business Photos in the Czech Republic; Bosch plans to hire 100 more engineers for its South Bohemian innovation center.

Central bank governor says Czech Republic will not enter Eurozone before 2019

Photo: European Commission
The governor of the Czech National Bank, Miroslav Singer, said this week that he does not foresee the Czech Republic switching to the euro before 2019. Even if the governing coalition after the next parliamentary elections will be more eager to adopt the European currency, the central banker said they will not be able to file an application for the acceptance into the Eurozone before 2016. Mr. Singer also underscored the fact that this is primarily a political issue, and that President Zeman’s recent five-year prognosis for Euro adoption is not realistic.

OECD lowers forecasted growth for Czech GDP

Photo: Štěpánka Budková
Half a year after providing a positive forecast for the growth of the Czech GDP this year, the OECD dampened its predictions this week saying that the GDP in this country will actually contract by one percent, instead of growing by 0.8 percent. The organization maintains that next year the economy will be picking up in the Czech Republic, but the expected growth for 2014 was also brought down, from 2.4 to 1.3 percent. The OECD made a recommendation for the Czech central bank to ease monetary policy, potentially by intervening to weaken the crown.

Automobile industry increased revenue by 7% last year

Photo: Klára Stejskalová
The revenues of the Czech automotive sector grew last year by around 7 percent to 838.5 billion crowns. More than four-fifths of the production was exported, according to the Automotive Industry Association, whose members came out with 721 billion crowns in revenue last year, improving sales by six percent from the previous year. At the same time, car production in the Czech Republic actually decreased last year by 1.7 percent to over 1,100 vehicles. The top three producers in 2012 were Škoda Auto, Hyundai and TPCA. Although automotive exports to Europe have not grown recently, business with Asian countries is on the rise, with exports to non-European countries having increased by more than 35 percent last year.

Google to offer Business Photos service in the Czech Republic

Photo: Kristýna Maková
The Czech Republic is one of eight countries where Google released their Business Photos service this week. Business Photos, which is similar to the Street View option in Google Maps, allows companies to present panorama photographs of the interiors of their locations. The local top search engine Seznam decided to challenge the American giant even before the release of Business Photos. They are planning to provide a similar service soon, but business owners will be able to provide their own photographs. Google will be charging for their services, although it is not clear yet what the fee in the Czech Republic will be.

Bosch plans to expand its development team in South Bohemia

Illustrative photo: CTK
The German engineering and electronics company Bosch is planning to further expand the innovation and research team at their plant in České Budejovice. The company invested 12 million Euros last year to expand their South Bohemian factory, where they currently have 400 researchers and developers working on gas motor systems. This year Bosch is planning to hire 100 more engineers, and will become more involved in technical education in this country, starting from primary school level. The company invested 73 million euros in the Czech Republic last year, and employed 7,400 people.