The Czech Republic currently meets two out of four conditions for joining
the euro zone, according to the European Commission’s Convergence Report
reviewing member states’ progress towards euro adoption released on
The report concludes that the Czech Republic fulfils the criteria on public finances and long-term interest rate but doesn’t meet the price stability and the exchange rate criteria.
Along with the Czech Republic, the report covers another six EU member states that are legally committed to adopting the euro, which include Bulgaria, Croatia, Hungary, Poland, Romania and Sweden. The single European currency is currently used by 19 EU member states.
The Czech Republic has the lowest jobless rate in the European Union with vacancies now outstripping the registered unemployed. But moves to attract workers from Ukraine are being hampered by red tape. That sparked a lightning visit last week by the Czech labour minister and a raft of reforms are now promised.
The price of petrol and diesel is rising and is now at its most expensive
since 2015, the ctk news agency reports.
The price of petrol has now reached 32.23 crowns per litre on average and analysts predict it could reach 34 crowns per litre in the course of the summer.
The price of crude oil has been rising due to a growing global demand and the crown is weaker against the dollar than expected.
After strong growth last year, the Czech Republic’s economy continues to thrive. Indeed, according to freshly released preliminary figures, gross domestic product expanded by 4.5 percent in the first quarter. This was down from the 5.5 percent recorded in the final quarter of last year but is still a notable result. I discussed the new data with economist Jan Bureš of Patria Finance.
The Czech economy faces no real threats with relatively high economic
growth seen in the next years, according to an International Monetary Fund
evaluation of the country.
The annual evaluation said it could see no major imbalances, budget policy was prudent, and rising wages are a response to the need to fill jobs, according to the IMF.
It sees economic growth this year at 3.7 percent and in 2019 at 3.2 percent. That’s slightly down on the 3.9 percent and 3.4 percent forecasts of the Czech National Bank. The IMF sees mid-term Czech growth averaging at 2.5 percent.
The ANO party which is trying to form a coalition government with the Social Democrats, with tacit support from the Communist Party, is preparing changes to the law on electronic cash registers introduced at the start of 2017 as a means of fighting tax-evasion. The third and fourth phase of the project, due to have come into force this year, had to be postponed after the Constitutional Court voiced reservations to some of the measures involved.
The Czech Statistical Office said a more than 4.0 percent hike in the
prices of alcoholic drinks was one of the main factors fuelling faster
price rises. Tobacco prices also rose by 3.5 percent.
Across the board increases in April for a series of utility services, such as water, wastewater, and electricity also contributed significantly. Higher rental charges, up 2.6 percent, for property were also a factor. In the opposite direction, there were lower charges for telecoms and for clothing and footwear.
Czech unemployment fell to 3.2 percent in April from March’s 3.5 percent,
according to figures released from the national labour office. It said that
seasonal work was now in full swing and the jobless total could increase in
The office added it had almost 243,000 job seekers on its books. That’s the lowest figure since August 1997. In April 2017, the jobless rate was 4.4 percent.
The number of vacancies, at just over 267,000. once again exceeded the jobless total in the country. Most job offers are in Prague, central Bohemia, the Plzeň and Pardubice regions.