Czech economy booming despite growing oil prices
Figures just released by the Czech Statistical Office indicate that in spite of the country's drawn out political crisis and the growing price of oil on world markets the country's economy is booming. The Czech Republic is currently the world's sixth biggest exporter, with the highest export figures in Europe.
"I believe that the location of the country is its major advantage because this is something that influences foreign investors to a considerable extent. In this respect we have a major advantage in comparison with, for example, Slovakia. Another big advantage is in the fact that the Czech Republic's infrastructure is better than that of Poland, Hungary or Slovakia. "
"Growing oil prices might potentially slow down the country's economic growth because obviously the higher price of oil will increase production costs and thereby de-crease profits, which could lead to lay offs and a drop in economic growth. However that's the theory. In practice the situation is different from that during the last big oil crisis twenty or thirty years ago. The structure of the economy has been changing and the economy is now more fuelled by services than heavy industry which is more dependent on the price of oil. This means that even higher oil prices - reaching, let's say, one hundred dollars per barrel - wouldn't significantly harm the economy."
"Theoretically, if this crisis should last for months, it might result in some loss of foreign investment and of course that could endanger not only the foreign trade balance but also the unemployment rate and economic growth. But I believe that this political crisis will be resolved within one or two months at the latest and in such a case the country's economic growth will most likely not be endangered."