Manufacturing industry continues to drive Czech economic growth

The Czech economic growth continues to be mainly driven by the manufacturing industry, although most sectors of the economy are indicating a positive trend. On the demand side, consumption is expanding, underpinned by the accelerated wages and positive consumers’ expectations.

Meanwhile, any fundamental economic changes or reforms are unlikely due to the Autumn Parliamentary elections. Progress in the nation’s preparations for joining the euro area is not expected in this electoral term either, noted KBC Market Research.

“We believe the Czech koruna should post gains in the mid to long-term after the end of the interventions seeing it in 1Y horizon about 5% stronger (slightly below 26.00 EUR/CZK)”, said KBC Market Research.

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