Another big increase in unemployment came mainly due to significant cost-cutting as a response to drop in demand. An influence of seasonal factors is usually positive in February (compared to January), however it played a minor role this time. We expect the unemployment rate to go up by another 1 pp by the end of the year.
Negative influences come to the Czech economy from abroad. However, unemployment data show that their impact on domestic demand is fast and heavy. Due to this fast transition, the Czech recession is likely to be deeper than expected.
Actual (Feb): 7.4 %
Consensus: 7.0 %
Previous (Jan): 6.8 %