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Czech watch - 25 April 2002

25.4.2002 11:00
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European Commission published yesterday its spring macroeconomic forecasts for Central and Eastern Europe (EU candidate countries). 2002 GDP growth is expected to be limited to +3.4%, next year GDP is seen to recover to 3.9%. Structural problems at the labor market will likely limit a rise in job creation, thus the unemployment rate is expected to remain high. Its average rate will likely to reach 8.8% this year and 8.6% in 2003. The average rate of inflation will drop to 3.9% this year and to 3.5% in 2003. Government deficit measured by Maastricht’s criterion methodology will probably rise to 6.6% in 2002 from 5.5% in 2001. Next year the deficit is expected to fall back to 6.0%.

Ministry of transportation suggests to postpone privatization of Czech airlines to next year. The main reason is an unfavorable situation on the market since the terrorists attacks in September 11. The sale of the 15% share to consortium SkyTeam (Air France, Delta) was approved by the Cabinet in half of 2000.

Trutnov appeal still attracts an attention. The appeal has been signed by more than 230 firms. Whereas CNB agreed to meet organizers of the appeal in order to discuss potentials to limit the impact of appreciating CZK on exporters, the Cabinet stays silent.

Physical handicap of the Czech Premier Milos Zeman and successful parliamentary obstruction caused yesterday that the Parliament could not vote on financing the purchase of Gripen fighters. The voting will likely be repeated soon respecting term of 2002 parliamentary election.

April’s Consumer prices in Germany rose 0.1% m/m, preliminary results showed. Thus the inflation fell to 1.6% from 1.8% in March.

Click here for the „Czech economic daily“ in .pdf format.

Radim Krejčí

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