Daily economic news from the Czech Republic: overview of the past 24 hours (11.2.2025)

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Overview of the latest economic events in the Czech Republic

In January 2025, unemployment in the Czech Republic increased to 4.3 % from 4.1 1 % in December 2024. The number of unemployed persons increased by 14,038 persons to a total of 320,516 persons. In addition, the number of job vacancies in the country declined significantly, with 83,323 reported in January, down 163,250 from the previous month.

The PX index of the Prague Stock Exchange closed at 1,916.43 points, reflecting a slight increase from the previous close at 1,903.57 points. This positive movement was driven by gains in the energy sector, particularly CEZ, whose shares rose due to favourable market conditions. The financial sector also contributed, with major banks reporting increased trading volumes.

Czech defence companies have significantly increased their exports since the beginning of the conflict in Ukraine. Total exports of the Czech defence industry have increased by 350 %, while direct exports to Ukraine have increased fortyfold. In the second year of the conflict, Czech arms manufacturers earned approximately three billion euros (over 75 billion CZK). This sharp increase underlines the growing international demand for Czech defence products.

Foreign investments - trends and interesting facts

A major international industrial company has announced a new investment in the advanced manufacturing sector in the Czech Republic. The investment worth several billion crowns will enable the construction of a manufacturing plant focused on precision engineering and industrial automation. The move is in line with the Czech government's strategy to attract investment in high technology and ensure the economy's long-term competitiveness in industrial innovation.

Czech energy giant CEZ has started new negotiations with European energy partners on joint investments in renewable energy projects. The agreement, which is expected to focus on offshore wind and solar infrastructure, highlights the growing regional demand for clean energy solutions. This partnership is in line with the Czech Republic's commitment to reduce its energy dependence on fossil fuels while securing new sources of revenue in the European energy market.

The Czech Republic and South Korea have made progress in negotiations to establish a joint investment framework in semiconductor manufacturing and artificial intelligence research. This initiative is expected to bring leading Korean technology companies to the Czech market and boost research and development in cutting-edge sectors. The Czech government sees this as a crucial step towards making the country a leader in European technology manufacturing.

Czech billionaire Pavel Tykač, owner of Sev.en Global Investments, is accelerating his strategy of acquiring carbon-intensive assets outside the European Union. This approach has been reinforced by recent political developments that have favoured fossil fuels. Sev.en is actively investing in coal operations in the United States, Australia and Vietnam, betting on a slower transition to cleaner energy sources. The company plans to double its foreign portfolio over the next two to three years, reflecting a strategic move to take advantage of global energy market dynamics.

Czechoslovak Group (CSG), a major Czech industrial conglomerate, is expanding its international presence through strategic acquisitions. In October 2023, CSG announced an agreement to acquire the ammunition businesses owned by US-based Vista Outdoor for $1.91 billion, pending regulatory approval. The acquisition is aimed at strengthening CSG's position in the global defense market and diversifying its product portfolio.

CPI Property Group (CPIPG), a leading Czech real estate company, has actively engaged in international acquisitions to strengthen its portfolio. In recent years, CPIPG has expanded its presence in Central and Eastern Europe through significant property acquisitions, including office buildings and retail space. These strategic investments aim to consolidate CPIPG's position as a major player in the European real estate market.

Significant events outside the Czech Republic with global impact

In the past 24 hours, the major bourses have seen fluctuations. The US NASDAQ and NYSE made gains on the back of strong performance in the technology and semiconductor sectors, while London's FTSE 100 and Frankfurt's DAX fell slightly on investor concerns over inflation and uncertainty over the European Central Bank's (ECB) interest rate policy. Asian markets remained volatile, particularly in China, where economic data suggested a slower industrial recovery. These movements have implications for Czech investors and businesses as shifts in major economies affect global capital flows and foreign investment on the Prague Stock Exchange.

The European Union has finalised a new trade framework with Asian partners aimed at boosting exports of industrial goods, automotive components and technology. The Czech Republic, which is heavily dependent on exports, should benefit from increased market access, especially for car manufacturers and high-tech companies. Meanwhile, negotiations between the EU and Latin America on trade in agricultural and industrial machinery are continuing, which could open up new export opportunities for Czech firms.

The Czech government is stepping up economic partnerships with partners in the Middle East and North America, focusing on technology investment and energy cooperation. A new initiative is under discussion to increase the Czech Republic's share of global semiconductor production and ensure technological competitiveness in the European market.

Current exchange rates according to the CNB and Google Rates

Source about precious metals and Bitcoin: tradingeconomics.com

GH

photo: ekonomickydenik.cz