• Balance of trade in March reached surplus of CZK
12.4bn after February’s positive balance of CZK
13.6bn. Machinery and vehicles exports and favourable prices in foreign trade contributed to this result. Exports increased by 13% y/y while imports by 11.8% y/y.
ding to Ministry of Finance, reform of Mr Vlastimil Tlusty would increase state budget deficit by CZK
288bn in the first three years. Tlusty does not agree with MF calculations.
• Railway unions want to push against public finances reform. The reason is effort to cancel tax allowances of overhead tickets and company canteens.
• Slovakia’s industrial production increased by 12.5% y/y in March and construction output added 16.1% for the same period.
• Germany’s foreign trade reached surplus of EUR 15.5bn in March after surplus of EUR 14.7 in February.
ding to IMF, Hungary should cancel fluctuation band of forint
and switch to floating band. IMF is also concerned that deceleration of Hungary’s growth rate could be long-term.
• EC decreased its forecast for GDP growth of the Czech Republic for this year to 4.9% from 5.1%. On the other hand, forecast for 2008 was increased to 4.9% from 4.7%. Public finances deficit should reach 3.9% of GDP, according to EC.