The Prague Stock Exchange continued its growth from Friday at the beginning of the week, with the PX index rising by 0.44 percent. The government has decided that the state will take over the management of the Karlovy Vary airport, which will serve civilian air traffic, the military, and the air ambulance service. The OECD has published an updated forecast, according to which the Czech economy is performing better this year than expected, but a slight slowdown is expected next year due to weaker exports and geopolitical risks.
The Prague Stock Exchange continued its growth from Friday at the beginning of the week. The PX index rose by 0.44 percent to 2572.46 points. Shares of Komerční banka, as well as both defense companies, were among the factors driving the increase. Market activity was below average. The Czech crown remained stable against the euro today and strengthened against the dollar.
The state will take over the management of the Karlovy Vary airport. In addition to its current civilian air traffic, it will also be used for the needs of the military and a newly established air ambulance station. The Ministry of Defense will ensure the necessary modernization of the runway to meet the requirements for NATO operations. This decision was made today by the government, according to a press release from the government office.
The Organization for Economic Cooperation and Development (OECD) has published an updated forecast, according to which the Czech economy is performing better this year than expected. The organization has slightly worsened its outlook for next year; in June, it expected growth of 2.2 percent, and in 2027, the pace should accelerate to 2.1 percent. The OECD expects slightly higher investment thanks to EU funds for the support of recovery and resilience, which will be available until the end of this year. Export activity is expected to remain weak in the short term due to trade restrictions, but should gradually improve with a recovery in demand from abroad, especially from Germany.
Among the risks to further growth, the OECD has cited increasing trade and geopolitical tensions, which could slow down the economy, as well as the possibility that overly expansionary domestic fiscal policy could lead to higher inflation. The combination of stronger performance this year and the most uncertain outlook for next year suggests that Czech exporters and investors should prepare for more volatile conditions in the second half of the decade.
Comments
Sign in · Sign up
Sign in or sign up to comment.
…