Business News

In Business News this week: Industrial production accelerates in May to 8.6 percent; Government approves increased tax credit for families with two or more children; Foreign trade surplus shrinks to 18.2 billion crown in May; Foreign trade surplus shrinks to 18.2 billion crown in May; Avast to acquire Dutch rival AVG Technologies; Czech truck manufacturer Tatra Trucks making inroads in Middle East, Asia, looking to increase workforce.

Industrial production accelerates in May to 8.6 percent

Photo: Tomáš Adamec

Industrial production accelerated in May, achieving year-on-year growth of 8.6 percent, which is the highest figure since June 2015. In April, industrial production climbed by 4.2 percent. The main factor fuelling the output increase was higher production of cars. The growth in the construction sector, by contrast, slowed to 4.3 percent from April’s 13.7, which is the worst result since March 2013.

Government approves increased tax credit for families with two or more children

The government on Thursday agreed to increase tax credits for parents with two or more children. Next year, parents will be able to deduct more from their tax for second and third children. At present, parents get an annual tax credit of 13.400 crowns for the first child, 17,000 crowns for a second child, and 20,600 crowns for every subsequent child. In 2017, parents will be able to deduct 2,400 crowns more from their tax returns for a second child and 3.600 crowns more for every child thereafter.

Foreign trade surplus shrinks to 18.2 billion crown in May

Photo: Calvin Teo, CC BY-SA 2.5

The Czech Republic recorded a foreign trade surplus of 18.2 billion crown in May, which is an improvement of 7.7 billion crowns compared to the same month last year. At the same time, it is the lowest foreign trade surplus figure recorded so far this year. In previous months, it always exceeded 20 billion crowns. Exports in machinery and cars were among the main factors fuelling the surplus

Avast to acquire Dutch rival AVG Technologies

Czech based computer anti-virus and security company Avast Software is set to acquire its Dutch rival AVG Technologies for nearly 32 billion crowns (some 1.3 billion dollars). According to the Reuters agency, the company made the move to expand its presence in emerging markets. Avast provides both free and paid for security software for PCs and mobile devices and has more than 230 million users worldwide. After acquiring its Dutch rival, the number of users will exceed 400 million.

Social housing bill should be passed by government: Jiří Dienstbier

Minister for Human Rights, Jiří Dienstbier, has said a new bill on social housing should be passed during the current government’s term. The comments to the Czech News Agency follow delays to the proposed law which was originally destined to be in place at the start of 2017. A half year delay to that target has already been announced and the prime minister’s main advisor, Vladimír Špidla, has suggest another similar delay is probably in the pipeline. The bill would aim to make emergency, social, and cheap housing available to those with below average incomes.

Czech truck manufacturer Tatra Trucks making inroads in Middle East, Asia, looking to increase workforce, writes iDnes

Photo: Czech Television

The Czech truck manufacturer Tatra Trucks, owned since 2013 by Jaroslav Strnad, is making new inroads in Middle Eastern and Asian markets, looking to increase its workforce by some 200, the Czech daily iDnes reported on Monday, noting that the manufacturer wants to build 1,300 vehicles this year. In 2015, it rolled out 858. the truck producer recently signed military contracts in Egypt and Jordan, with India looming as a promising market, the daily writes. In its heyday in Communist Czechoslovakia, the then state-owned truck maker produced some 15,000 vehicles annually.