• The budget balance reached a deficit of CZK 6.7bn in February following a surplus of CZK 5.0bn in January. Earnings fell by 0.8% in comparison to the previous year, but expenses increased by 3.3%. The approved 2007 budget balance deficit is CZK 91.3bn.
• The Czech National Bank left interest rates unchanged in-line with expectations. Inflation and anti-inflation risks are balanced because lower January inflation has been off-set by a weaker CZK and optimistic outlook for foreign economic development according to CNB’s Governor Zdenek Tuma.
• Poland’s GDP in the 4Q06 increased by 6.4% y/y after 5.8% growth in the previous quarter. For the full year 2006 GDP increased by 5.8%.
• Retail sales in Germany decreased by 5.1% m/m in January. Deep decline was caused by January’s VAT increase from 16% to 19%. In year-on-year comparison, retail sales decreased by 1.4%.
• Purchasing Manager’s Index in manufacturing industry in the USA which approximates economic activity, increased to 52.3 in February from 49.3 in January.
• Same indicator for eurozone increased by 0.1 to 55.6. Adjoining indicator for price trend expectations is currently at 57.5, which is suggesting inflation increase and interest rates hike from ECB.