In this week’s Business News: Czech 2010 growth revised downwards; surge in real estate investments seen; coal limits look shaky as heat plants search for supplies; richest Czech falls down Forbes’ ranking; and Prague centre shops rapped for ripping off customers.
Czech growth pared back to 2.2 percent
Photo: Štěpánka Budková
Czech economic growth in 2010 has been revised downwards by the country’s statistics office. It says Gross Domestic Product climbed by 2.2 percent compared with a year earlier instead of the earlier estimate of 2.3 percent. It also scaled back its figure for fourth quarter growth in 2010 to 2.6 percent from 2.9 percent. The office said growth is being pulled by export oriented manufacturers but domestic demand and activity, especially in the construction sector, is lagging.
Consultants see 200 percent growth in real estate investment
International real estate consultants and brokers Cushman and Wakefield have produced an upbeat assessment of prospects on the local market. Its global market survey sees real estate investment climbing by 200 percent in 2011 in the Czech Republic and Slovakia. The reason is that international investors are expected to pile in again because favourite locations, such as London, have become too expensive and returns are more attractive elsewhere. Last year real estate investment in Central Europe is estimated to have climbed by 60 percent, which is higher than the European average.
Heating plants stoke up pressure on coal limits
Photo: Tomáš Fencl
The Ministry of Industry and Trade has suggested the government back down on its election pledge not to relax 20-year-old environmental limits on coal mining. The ministry says mining beyond the limits after 2015 should be considered in order to prevent coal supplies drying up for heat suppliers to major towns and cities. A big proviso from the ministry though is consent from nearby towns and communities for further mining. The Czech Republic could double its coal reserves and ensure supplies until the end of the century if all the limits were abolished.
Kellner adds billions but drops down rich list
The wealthiest Czech, Petr Kellner, has made it into the top 100 ranking of Forbes’ listing of the world’s rich for the fourth year running. The insurance, minerals and loans business magnate is estimated to be worth 9.2 billion US dollars, which puts him in 97th place in the 2010 ranking. That is a drop of eight places from a year earlier in spite of a 1.6 billion US dollar hike in his personal value. The increasing value of investments in Russia and China are largely credited with boosting his portfolio. Two other Czech born or based businessmen; mining, media and real estate owner Zdeněk Bakala and agro-chemicals boss, Andrej Babiš, made it onto the extended list in 595th and 1,057th positions.
Only one city centre shop given clean bill
Prague city centre shops and businesses have been the subject of a damning report from trade inspectors. The inspectors checked 31 businesses in the second half of February and start of March and found fault with 30 of them. Counterfeit goods were being sold in what were supposed to be high class boutiques, expensive chocolates were weighed along with packaging so customers paid more, and proper price information or details about the goods were lacking in many instances. The inspectorate described its findings as shocking.
