Czech Finance Minister Deputy Eduard Janota fears that there will be a gap in value added tax collection worth of CZK 6bn this year. He said the reason for the gap was not an overestimation of this item within the state budget draft but an inefficient collection and excessive deductions from the tax. He also said that the budget would have to be reformed after elections and he explicitly stated that it would be necessary to tighten conditions for social allowances.
Gripen versus F-16. Belgian government offered the Czech republic 24 used super-sonic F-16 aircrafts manufactured by Lockheed Martin for CZK 9bn. First unit could be delivered in eight months, the others would follow each in one month. However, the Czech cabinet has approved a purchase of 24 Gripen fighters for CZK 50bn.
French 1Q GDP rose by 0.4% in comparison with previous quarter. The growth was equally driven by private consumption, governmental spending, investments and chnage in inventories. Each item contributed to the rise by 0.1%. In yearly comparison the GDP increased by 0.3%.
British economy stagnated in the same period according to revised figures. Year-on-year change decelerated to 1.0%.
Downward revision also hit the GDP in the United States. Whereas 1Q preliminary figures showed an expansion by 5.8%, Friday’s revision posted only +5.6%. But to keep our minds bright, the GDP rose just 1.5% y/y measured by conventional standards.
Click here for the „Czech economic daily“ in .pdf format.