The rebound in domestic demand gained momentum in Q115, surpassing even our relatively optimistic expectations as evident in an impressive GDP growth outturn. We have upgraded our forecast for Czech real GDP growth in 2015 to 3.5% and in 2016 to 3.2% from 3.1% for each year previously. Domestic demand is rebounding rapidly, underpinned by record low borrowing costs, subdued inflation, tightening labour market, while external dynamics provide favourable conditions for the ongoing recovery.
A recent no confidence vote in the Czech Republic's centre-left government would likely diminish the popularity of Finance Minister Andrej Babis, and his ANO party - the junior coalition partner in the coalition. This, however, is likely to result in a shift in the balance of power towards the ruling CSSD party, instead of rise in support for the opposition parties.
The centre-left government of Prime Minister Bohuslav Sobotka will remain on an expansionary fiscal trajectory course in 2015 and 2016. Higher fiscal spending, however, is unlikely to darken market perceptions of the country's solid sovereign risk profile.
Full Report Details at
- http://www.fastmr.com/prod/1052863_czech_republic_country_risk.aspx?afid=301
The Czech National Bank will begin monetary tightening by end-2016, as demand-side inflationary pressures continue to pick up steam, and supply-side disinflationary pressures recede into 2016.
Major Forecast Changes
Lower import energy costs, along with the improving outlook for external demand mean that the Czech Republic will continue to post modest current account surpluses in 2015 and 2016. We have adjusted accordingly our forecast for the Czech Republic's current account surplus to arrive at 0.5% of GDP in 2015 from -0.2% previously and at 0.2% in 2016 from -1.2% previously.
The Czech Republic Country Risk Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Czech Republic. It is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.
An influential new analysis of Czech Republic's economic, political and financial prospects through end-2019, just published by award-winning forecasters, BMI Research.
Key Uses
* Forecast the pace and stability of Czech Republic's economic and industry growth through end-2019.
* Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
* Assess the critical shortcomings of the operating environment that pose hidden barriers and costs to corporate profitability.
* Contextualise Czech Republic's country risks against regional peers using BMI's country comparative Risk Index system.
* Evaluate
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Now Available: Czech Republic Country Risk Report Q4 2015
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001