Daily summary of the Czech economy: Vienna Insurance Group, Preh GmbH, Panasonic and OpenAI (21 May 2025)

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Overview of the latest economic events in the Czech Republic

The Prague Stock Exchange ended today's trading on a positive note and continues its upward trend. The PX index increased by 0.32 % to a record 2192.95 points, briefly surpassing the 2200-point mark during the day. Shares of banking titles - Komerční banka and Erste Bank - and the insurance company VIG (Vienna Insurance Group) contributed to the growth in particular. In contrast, shares of energy company CEZ weakened today, despite recent positive announcements regarding investments in renewable energy.

The Czech Statistical Office announced today that inflation slowed to 2.7 % in April, the lowest level since the beginning of the year. Consumer prices fell mainly for food and transport costs. At the same time, the Ministry of Finance released an updated GDP outlook for 2025, projecting growth of 2.3 %, slightly above market expectations.

The Czech National Bank (CNB) today left the key interest rate unchanged at 5.25 %, citing uncertainties in the global economic environment. However, Governor Ales Michl did not rule out the possibility of a rate cut at a future meeting if the confirmed trend of slowing inflation is sustained.

Foreign investment

The Czech Republic has seen several key developments in foreign investment. The German manufacturer of electric vehicle components Preh GmbH announced the expansion of its production in Česká Lípa. The new investment of CZK 3 billion is expected to create up to 400 new jobs. The project was supported by the Ministry of Industry and Trade through an investment incentive.

Japanese company Panasonic has confirmed that it will open a new research centre in Pilsen focused on the development of batteries for electric vehicles. The new plant is expected to contribute to strengthening the Czech Republic's strategic role in the European automotive industry.

On the other hand, the Spanish concern FCC Environment announced the sale of its Czech waste division to Marius Pedersen, which will have an impact on more than 100 employees. The acquisition has been approved by the Competition Authority.

Significant events outside the Czech Republic with global impact

US technology company OpenAI today announced the acquisition of design start-up io Products, founded by Jony Ive, former head of design at Apple. The $6.5bn (£143bn) deal is expected to bring new hardware products designed for the era of generative AI. Ive is also taking on the role of creative director of OpenAI, a move that is seen as strengthening the company's competitiveness in AI-enabled devices.

The cryptocurrency market today saw bitcoin hit an all-time high, with its price climbing to USD 109,500 (approximately CZK 2.4 million). Analysts see the main reason for this in growing institutional interest and expectations of favorable regulations under the new US administration.

A major acquisition also took place in Europe, where British bank HSBC bought French fintech firm Lydia for €1.2 billion. The aim is to boost mobile banking and gain access to younger users in the eurozone. On the same day, German carmaker Volkswagen announced a plan to acquire a majority stake in Chinese start-up Xpeng Motors, responding to competition from Tesla in smart electric cars.

Finally, global stock markets saw a positive reaction to the Bank of China's announcement of a key interest rate cut, which is aimed at boosting domestic consumption and exports. This move may have a significant impact on the global economic balance in the long run.

Current exchange rates according to the CNB and Google Rates

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