Daily economic news from the Czech Republic: overview of the past 24 hours (9.2.2025)

412

Overview of the latest economic events in the Czech Republic
In the past 24 hours, the Czech government announced plans to allow pension funds to invest in housing projects to address the housing shortage and stimulate the construction sector. Finance Minister Zbyněk Stanjura stressed that this initiative could lead to the construction of up to 10,000 new apartments per year, which would provide a significant boost to the real estate market.

In addition, the Big Mac Index revealed that the Czech koruna was undervalued against the US dollar by approximately 21 % in January. This suggests potential scope for currency appreciation, which could affect export competitiveness and foreign investment inflows.

The Prague Stock Exchange experienced a positive trading session, the PX index rose by 1.2 % and closed at 1,850 points. This growth was driven by gains in the financial sector, particularly Komerční banka and Moneta Money Bank, whose shares rose by 2.5 % and 1.8 % respectively. The energy sector also contributed to the uptrend, with CEZ shares gaining 1.9 % amid ongoing discussions on diversification of energy sources in the region.

Foreign investments - trends and interesting facts
A leading European industrial group has announced a major investment in the Czech Republic to expand its production capacity in the automotive industry. The multi-billion CZK investment is aimed at strengthening the integration of the supply chain of components for electric vehicles. The project is expected to create hundreds of new jobs and strengthen the country's position as a key player in the European electric vehicle market. Government officials are discussing investment incentives to ensure long-term benefits for the economy.

Czech energy giant CEZ has intensified negotiations with European partners to secure its expansion strategy in the field of renewable energy. The company is negotiating with German and Polish investors to co-finance wind and solar power projects that will increase the region's energy independence and reduce dependence on traditional fuel sources.

The Czech Republic and South Korea have launched a bilateral investment programme, mainly focused on technology and semiconductor manufacturing. This initiative is expected to attract Korean companies to establish research and development centres in the Czech Republic, thereby strengthening high-tech manufacturing capabilities.

Significant events outside the Czech Republic with global impact In the past 24 hours, global stock markets have been mixed. The US stock markets NASDAQ and NYSE saw modest gains, particularly in the technology sector, as investors reacted to positive earnings reports. Meanwhile, European markets, including Frankfurt's DAX and London's FTSE 100, posted losses on concerns over a possible ECB interest rate adjustment. Asian markets remained volatile, with Chinese equities falling on weaker-than-expected economic data. These market movements could have an impact on Czech investors as fluctuations in international indices often affect foreign investment inflows to the Prague Stock Exchange (BSE).

The newly signed EU-Asia trade agreement is expected to boost industrial exports, including automotive and machinery parts, sectors that are key to the Czech economy. The Czech government has expressed its support for the agreement and highlighted its potential for expanding manufacturing production and job creation. In addition, negotiations between the EU and Latin American countries could open up new opportunities for Czech agricultural and industrial exports and diversify the country's trade portfolio.

Czech officials stepped up diplomatic talks with partners from the Middle East and North America, focusing on investment in technology, energy cooperation and industrial trade partnerships. Particular emphasis is placed on expanding the Czech Republic's role in high-tech sectors, with increased cooperation in semiconductors and artificial intelligence research.

Impact on the Czech economy
Fluctuations in global stock markets, particularly the DAX, FTSE 100 and NASDAQ, could affect foreign investment inflows to the Prague Stock Exchange (BSE). Given the change in investor sentiment due to interest rate concerns and economic data from China, Czech policymakers may need to adjust financial strategies to ensure market stability and continued investment growth.

The new trade agreement between the EU and Asia represents an opportunity for Czech manufacturers, especially in the automotive and industrial sectors, to expand their exports. The government is focused on securing favourable terms for Czech businesses, ensuring long-term benefits for economic growth and employment.

Given the fluctuations in the global energy market, Czech officials prefer to invest in renewable and nuclear energy. Ongoing negotiations with foreign partners on energy cooperation aim to reduce dependence on volatile external sources and stabilise domestic energy costs, ensuring long-term economic resilience.

Current exchange rates according to the CNB and Google Rates

Source about precious metals and Bitcoin: tradingeconomics.com

GH