From second quarter to third quarter of 2001,nonfarm business sector productivity in US economy rose at an annual rate of 1.5 percent, as output decreased 2.0 percent and hours of all persons engaged in the sector decreased 3.4 percent. Unit labor costs in nonfarm businesses rose 2.3 percent in the third quarter of 2001, following a 2.6 percent increase one quarter earlier. Unit labor costs are used as a measure of wage inflation. The deceleration of unit labor costs increase suggests that FED could ease monetary conditions further. Next FOMC meeting is scheduled for December 11.
The European Central Bank kept its benchmark interest rate at 3.25 percent and suggested it won't rush to reduce rates next year as the economy recovers. Policy makers last pared borrowing costs in November, by a half point. While Germany's economy, Europe's largest, shrank in the third quarter, signs that the U.S. is coming out recession have raised expectations for a revival in Europe.
A number of FDI projects in the Czech Republic should quickly increase also in 2002 said a chief of the CzechInvest. However, activity of foreign investors should move towards enlargement of their previous investment in 2003 and following years.
Czech food prices could increase by 10-20 percent by 2004, chairman of the Czech Agriculture Association Miroslav Jirovsky said. The price increase should be related to the preparatory steps for the EU accession and the convergence to market prices of agricultural products in the EU.
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