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Czech Watch - 14 March 2002

14.3.2002 11:08
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European Commissioner Guenter Verheugen seemed to be confused by the czech hot issues yesterday. He made a mistake when talking about the Czech government's willingness to examine the possibility to change so-called Benes decrees in order to harmonize Czech legislation with European union. He replaced Benes decrees with the restitution law of 1991 containing discriminatory elements. The reaction of czech politicians was fast and impressive.

Industrial output rose by 2.6% (y-o-y) in January. The appearance of January’s industry did not change in comparison with December, as far as production structure concerns. The most progressive development experienced production of electric and optical appliances. Increase in sales of industrial goods exported was surprising. Average wages rose by 6.4%, 2.6% in real terms. Labor productivity was 0.8% higher.

Czech statistical office has introduced new method of calculating the index of industrial output this year. The difference dwells in change of weight of particular industrial sectors in general index of industrial output. According to the new method, industrial output rose by 2.6% (y-o-y) in January. In terms of the old weighting method, however, the value of industrial output would be about 3% lower, thus, the result would be zero or slightly negative.

PPI index rose 0.2% (m-o-m) in February and decreased 0.1% (y-o-y) respectively. It was the first decline on year to year basis since February 1999. Prices of agricultural producers jumped 2.3% (m-o-m) , 5.1% (y-o-y) respectively.

U.S. February retail sales increased by 0.3% (m-o-m), following a 0.3% decrease in January. The sales rose by 2.9% (y-o-y).

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

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