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Czech Watch - 20 March 2002

20.3.2002 9:56
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Retail sales in real terms rose by 2.7%, year-on-year. The month-on-month index after seasonal adjustment increased by 0.6%. Retail sales increased namely due to sales of fuels, 10.3%. On the other hand, sale and repair of motor vehicles fell by 4.9% due to lower sales of Skoda Auto. Retail trade of other consumer goods increased by 3.8%.

Vladimir Spidla, CSSD chairman and Minister of labor and social issues, said yesterday for the Czech daily MF Dnes, that his party considers a tax reform that should increase a progressive character of tax rates scheme. While ODS promises a flat tax, CSSD decided to play a role of Robin Hood.

Japan's Matsushita Communication Industrial Czech opened a plant to produce mobile phones and car radios in Pardubice yesterday. So far, Matsushita has invested CZK 750 mil. In near future, the investment should increase by CZK 200 mil.

FED decided to leave the benchmark overnight bank lending rate at a 40-year low of 1.75 percent and said the economy is recovering from a recession that started in March of last year. The economy, bolstered by a marked swing in inventory investment, is expanding at a significant pace, the Fed said in a statement announcing its decision.

A global trend of declining interest rates may be over. Sweden's Riksbank raised its benchmark rate a quarter point to 4 percent. The Reserve Bank of New Zealand joined Riksbank and increased the official cash rate a quarter percentage point to 5 percent, quoting that a buoyant economy and a the global economic recovery will probably demand more rate increases.

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

Radim Krejčí

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