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Czech Watch - 2 April 2002

2.4.2002 10:28
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Crude oil prices kept rising up to USD 26 (BRENT) at the end of last week. The oil prices have jumped from USD 20 since the beginning of the year. Together with the oil, increased also prices of the other oil products. Czech importers benefit partly from the Czech crown appreciation against USD, however, the rising prices of gasoline and naphtha can not be bypassed.

Czech trade surplus with the EU member states almost doubled in the first two month of this year and reached CZK 15bn in comparison with CZK 8bn in the same period of the last year. Czech goods exported to the EU declined 2% year-on-year and stood at CZK 141.9bn. Fortunately the import fell by 7% amounting CZK 126.9bn.

The ecology is not for free. According to a Ministry of the environment report, the Czech republic will have to invest CZK 320bn in the environment during next eight years, in order to satisfy the EU’s requirements. Approximately CZK 186bn would pay the private sector, the other CZK 128bn would originate from the budgets of municipalities.

The shareholders of Vitkovice a.s. approved sale of 99% share of Vitkovice Steel to Osinek on Friday. Osinek is a subsidiary of the National Property Fund. The company has been financing production of Vitkovice for two years. Osinek will buy Vitkovice Steel for CZK 3.31bn.

The American ISM index of industrial activity increased to 55.6 points in March from February’s 54.7 points. The volume of new orders reached new record level since 1987.

Unemployment in France fell moderately in February, but not enough to push down the unemployment rate. The rate stands at 9.0%.

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

Radim Krejčí

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