• Balance of payment current account deficit deepened in December to CZK 16.3bn from CZK 11.1bn in November. Combination of negative foreign trade and deficit of income balance, which is weighted by reinvested profits and dividends of foreign investors, are behind this deficit. For the whole last year balance of payment current account deficit reached CZK 151bn (4.7% of GDP). In 2005 it reached CZK 63bn (2.1% of GDP).
• Construction output in December increased by 15.4% y/y. Favourable weather contributed to exceptionally high growth rate in construction. Volume of construction works for the whole last year increased by 6.6% after 4.2% growth in 2005.
• Current koruna weakening is lowering possibility of interest rates decrease, according to Miroslav Singer, vice-governor of Czech National Bank. He added that there is a possibility of interest rates remaining stable in the long-term.