The Turkish airline Pegasus Airlines has completed the acquisition of Czech Airlines and the Smartwings group. Industrial production in the Czech Republic has been growing for seven months in a row, and companies are starting to hire employees again. The state budget deficit for the first nine months reached 194.5 billion crowns, which is 40.7 billion crowns higher year-on-year. DOORNITE, a manufacturer of doors, will enter the Prague Stock Exchange's Start market in October. The Czech Republic has the lowest unemployment rate among all EU countries.
The Turkish airline Pegasus Airlines completed the acquisition of Czech Airlines and the Smartwings group after obtaining all necessary regulatory approvals. This merger creates a stronger Central European player in the low-cost and charter transportation segment. Pegasus Airlines is significantly strengthening its presence in the European aviation market and acquiring a network of destinations and production facilities that both Czech companies have built.
Industrial production in the Czech Republic has been growing for seven months in a row. Higher foreign orders are forcing companies to rehire employees, with the automotive and defense industries experiencing increased demand. The industrial recovery is in line with a slight improvement in the German economy, which is a key export market for Czech companies.
The state budget deficit for the first nine months of this year reached 194.5 billion crowns, an increase of 40.7 billion crowns compared to last year. After adjusting for EU revenues and expenditures, the deficit would be 210.7 billion crowns. Therefore, the total deficit for this year could exceed the government's planned 310 billion crowns.
DOORNITE, a manufacturer of doors and door frames, will enter the Prague Stock Exchange's Start market during October. The Jihlava-based company wants to raise 80 million crowns through an IPO for a 20% stake. The listing comes at a time when trading on the Start market is looking for new impetus after weaker performance in the summer months.
The Czech Republic has the lowest unemployment rate among all EU countries. The overall unemployment rate in the European Union remained at 6.1 percent in August, with the Czech Republic performing best, according to Eurostat statistics released on Thursday.
Fuel prices in the Czech Republic are below government-imposed maximum limits following the introduction of new regulations from October 1st. The average price of Natural 95 gasoline at domestic gas stations is approximately 41.37 crowns per liter, while diesel is sold for an average of 44.51 crowns per liter, according to data from CCS.
Construction workers have started excavating a exploratory tunnel for the planned Prostřední Vrch tunnel on the D3 highway. This is an important milestone in the preparation of one of the key infrastructure projects in the South Bohemian Region, which will connect Prague with České Budějovice via a smooth highway.
Analysts have raised their target price for Erste Group Bank shares, citing positive developments in the Central European banking sector in an environment of higher interest rates and solid credit portfolio quality.
Geoffrey Hunt
Tradingeconomics.com