Czech Finance Minister Jiri Rusnok and the signatories to the so-called Trutnov appeal agreed at their meeting yesterday that the overly strong crown is harming the Czech industry. Rusnok repeated that privatization proceeds would be kept off the currency market and the Cabinet would suspend eurobond issue. A fixed rate of the crown, which was one of the proposals within the Trutnov appeal, does not seem to be realistic in his opinion.
GDP of Germany fell 1.2% in first quarter in comparison with the same period of last year. Days-adjusted figure would show a decrease by 0.2%. In comparison with previous quarter, the GDP rose by 0.2% as projected by Bundesbanka on Tuesday (+0.25%). Moderate growth was driven by weak domestic demand, on the other hand, net export was the most dynamic component of the GDP.
Polish retail sales posted monthly fall by 2.8% in April, however, the sales were 3.1% higher than in last year. Rate of unemployment fell to 17.8% in April following a post-communist era maximum of 18.1% in March.
International Monetary Fund said Slovakian public finances deficit could deepen to 5.3% of GDP (SKK 55.5bn) this year from 3.5% of GDP foreseen by the government. The IMF sees a rise in social expenditures and a fall in non-tax incomes. The Fund also considers governmental spending being too high as the IMF forecast Slovakian GDP rise of 4% this year. And what about the CR?
According to Russian Finance Minister Alexei Kudrin, Russia will not lower its oil exports since world oil prices are above a level of USD 20. Russia has reduced its export in the first half of 2002 to comply with an agreement with OPEC supporting low prices from the beginning of the year. Russia decided to break the agreement with OPEC for the second half of 2002.
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