April 2004
  The newsletter for buyers and suppliers of castings and forgings
     
 

Czech Republic's economic situation

 
     
 

The year 2002 was a year of stable development indicating a continuous positive development. During 2002, due to world economic recession, the relatively high rate of growth from the previous years slowed down. However, it did not drop to zero values as it did in the European Union zone.

The unit labour costs and price competitiveness of the Czech Industry managed to eliminate the impact of low dynamics of European countries to a certain level but a significant slow down in foreign trade was registered and reduced GNP growth rate as a consequence.

The growth rate was further reduced by catastrophic floods in the basin of the Vltava and Labe rivers reaching a GNP growth of 2.5 % in stead of the previous 3% prognostics. Despite this event; the Czech Republic's GNP growth rate will rank among the highest in Europe.

Most of this growth is driven by local demand. Household consumption has grown by 3.8% and gross fixed capital by 3.3%. The investment growth signals that the economic development is founded on strong basis.

Inflation rate dropped significantly from 4.7% in 2001 to 2.0% , thus reaching the consumer price level rate in the EU. Unemployment rate has grown to 9.8%, once again becoming a key socio-economic problem. Overall labour productivity has grown by only 2.4%, which is significantly slower than the 4.5% increase in real wages.

See full reports :

Foundry Industry report >
Forge Industry report >
Trade fair - Fond-ex article >

 

 

 
     
     
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