The Prague Stock Exchange slightly increased on Monday, with the PX index rising by 0.3 percent. The harvest in the Czech Republic has progressed significantly, and the district of Břeclav is celebrating the first harvests of this year. An analysis of the apartment market shows that micro-apartments in Prague, around 15 square meters in size, are selling best, despite experts questioning their suitability for long-term living. The state budget remains deeply in deficit, and the government is considering new tax revenues. Low birth rates will have a significant impact on public finances—one weak generation will save the state approximately 13 billion crowns in expenses, but at the same time, it will worsen the outlook for the pension system.
The Prague Stock Exchange rose at the beginning of the week. The PX index increased by 0.3 percent to 2592.09 points. Among the leading companies, ČEZ energy company, VIG insurance company, and Monet Money Bank performed well, while shares of Komerční banka and Erste Bank lost value. Among smaller issues, Doosan Škoda Power in Pilsen closed with a gain of four percent, and CSG arms manufacturer's shares also rose by more than one percent. The Czech crown strengthened against the euro at the beginning of the week but weakened against the dollar.
The harvest progressed significantly last week despite frequent storms and showers. Farmers have so far harvested 30.39 percent of grain crops and 33.78 percent of rapeseed fields. Last year, due to rainy weather, only 12.35 percent of grain crops and 9.55 percent of rapeseed fields were harvested by this time. The district of Břeclav is celebrating the first harvests of this year, where the harvest of grains and rapeseed has been completed. This was announced by the Ministry of Agriculture.
The Prague apartment market has seen a new trend—micro-apartments with an area of around 15 square meters are selling best among all categories of apartments, at prices exceeding four million crowns. Experts point out that such apartments do not meet the conditions for long-term living and are more suitable as investment properties or for short-term rentals. Nevertheless, demand for them is growing because the entry price is more acceptable to investors than larger units.
The state budget remains deeply in deficit, and the government is looking for ways to improve revenue. The analysis shows that a balanced budget is not within sight, and the cabinet is considering introducing new taxes or expanding the existing tax base. Specific proposals will be part of the preparation of the state budget for 2027.
Low birth rates have a paradoxical impact on public finances. One weak generation will save the state approximately 13 billion crowns in expenses, as fewer children born means lower demands on maternity benefits, parental allowances, education, and healthcare. However, long-term demographic decline worsens the outlook for the pension system, which depends on the number of working people contributing to its ongoing funding.