Soaring energy prices contributing to high Czech inflation english.radio.cz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from english.radio.cz Daily Mail and Mail on Sunday newspapers.
At the beginning of February, Moody’s confirmed the Czech Republic’s credit rating at Aa3 with a stable outlook. A credit rating is an important guide for investors, as it shows them the likelihood that loans will be repaid, which has a significant effect on the willingness of creditors to provide loans to the state or other entities.
It also affects the terms of the loan, such as the interest rate. The higher the rating, the better creditors perceive the borrower and the more likely they will accede to cheaper loans.
“Moody’s warning is the first shot, fiscal consolidation was quite painful ten years ago, but now the situation is worse,” said the chief economist of the Deloitte Czech Republic consulting company, David Marek.
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURHUF= Euro/Hungarian forint reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURPLN= Euro/Polish zloty reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURRON= Euro/Romanian leu reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURRSD= Euro/Serbian dinar
WARSAW, May 6 (Reuters) - Most central European currencies will firm in the next 12 months, a Reuters poll showed, as economies recover in a region that has been hit hard by the coronavirus crisis.
As the economic toll of each subsequent wave of the pandemic eases, strong domestic demand and European Union funds look set to help central European countries bounce back strongly as people are vaccinated and economies reopen.
The Czech Republic’s balance of payments account - the sum of all economic transactions between the Czech economy and foreign countries - ended in a record surplus of CZK 203.5 billion last year. April and December were the only two months when the account balance was negative, according to data from the Czech National Bank.
ING Bank economist Jakub Seidler told the Czech News Agency that the large surplus is caused by deferred dividend payments. His counterpart at KB, Michal Brožka, said that the current account balance was positively affected in the second half of 2020 by the rise of exports combined with a low level of imports and deferred dividend payments. However, he does not expect the current account balance to improve further this year as the economy recovers, which will result in a rise of investment and associated imports.
Eastern Europe is struggling to contain a growing wave of coronavirus infections, even as an accelerating global vaccine rollout is raising optimism about the end of the pandemic.