Overview of the latest economic events in the Czech Republic

The Czech economy continues to grow moderately, although some sectors are facing new challenges. CEZ Energy Company has announced that its net profit for last year was CZK 27.4 billion, což je meziročně o 1,7 miliardy crowns less. The company also said that it plans to maintain the operation of some coal-fired power plants until at least 2030, while gradually adjusting their technological operation in connection with the transformation of the energy sector. Pavel Cyrani, vice-chairman of the board of directors, also confirmed that liquefied natural gas deliveries to European terminals have so far continued as planned. Průmyslová výroba in the Czech Republic in January increased by 2.8 % year-on-year, thus continuing a twelve-month growth streak. Stavebnictví on the other hand, after a long period of growth, recorded pokles o 1,5 %, which analysts attribute mainly to unfavourable weather and a high comparison base from the previous year. Maloobchodní tržby se však vyvíjejí positively and increased by five percent year-on-year.

Automobilka Škoda Auto reported a net profit of €1.85 billion (approximately 45 billion crowns), representing a year-on-year increase of 11 %. The company's sales reached a record 27,8 miliardy eur. The company also confirmed its plan to produce approximately 1,1 milionu vozů. Brewery group Plzeňský Prazdroj sold on the domestic market 7,17 milionu hectolitres of beer, down two percent year-on-year. The decline was mainly due to a weaker summer season and lower consumption of draft beer. On the financial markets, the Czech currency weakened to around CZK 24.44 per euro and CZK 21.22 per dollar. At the same time, fuel prices are rising - the average price of diesel in the Czech Republic rose by CZK 5.79 to CZK 40.89 per litre during the week, mainly due to the rising price of oil on world markets.

Foreign investment

Foreign capital remains an important factor for the development of the Czech economy. German concern Siemens announced an investment of approximately 3,2 miliardy korun to expand the production of industrial components in Ostrava. The investment includes the modernisation of production lines and the creation of approximately 450 new jobs. American technology company Amazon closed the acquisition of a logistics centre near Brno for approximately 1,1 miliardy korun od development group CTP. The transaction is intended to strengthen the company's distribution network in Central Europe.

Another significant financial operation is the EUR 900 million loan package that Czech infrastructure projects received from a banking consortium led by the European Investment Bank and a commercial bank UniCredit Bank. The funds are to be directed mainly to the modernisation of railway infrastructure and energy networks. Another investment is the entry of an investment fund BlackRock to the renewable energy project in the Czech Republic. The fund acquired 35% stake in the company Energo-Pro in a transaction estimated at approximately 600 milionů eur. The project aims to build new wind and hydro power plants in Central Europe.

Significant events outside the Czech Republic with global impact

The global economic environment is significantly affected by the ongoing tensions in the Middle East. The price of oil Brent climbed above $100 a barrel, the highest level in almost four years. The conflict in the region has also prompted International Energy Agency member states to release from emergency stocks around 400 milionů barelů oil to stabilize the global market.
Meanwhile, the U.S. Treasury has temporarily allowed the purchase of about 100 milionů barelů of Russian oil already loaded on tankers at sea. At the same time, significant energy transactions have emerged on the market.

Ropný gigant ExxonMobil announced the purchase of a stake in a deepwater project in Brazil from Petrobras for a value of 4,5 miliardy dolarů. European energy group Shell signs deal with Qatari company QatarEnergy for the long-term supply of liquefied natural gas in a volume of approximately 18 miliard dolarů over the next 20 years. At the same time, technology company Microsoft announced a $2.3 billion investment in building new data centres in Europe, which could strengthen the region's digital infrastructure. These global investments and energy agreements also have a direct impact on European economies, including the Czech Republic, particularly through energy prices, exchange rates and investment flows.

gnews.cz - GH

    [currency_and_metal_rates]

    tradingeconomics.com