Overview of the latest economic events in the Czech Republic
The Czech Republic recorded positive developments in foreign direct investment today. German car company BMW Group announced that it is investing approximately CZK 8 billion in the expansion of its logistics centre in Pilsen. The investment is part of the Group's wider strategy to strengthen its supply chains in Central Europe.
Japanese company Panasonic also confirmed the expansion of its battery systems production line in Ústí nad Labem, where it plans to invest CZK 2.5 billion in technology upgrades to increase production by 30 % over the next two years. The Ministry of Industry and Trade announced that the project will be supported by investment incentives.
Significant events outside the Czech Republic with global impact
The global market was dominated today by news of a 25 basis point increase in base interest rates by the European Central Bank (ECB). The move is in response to higher-than-expected inflation in the eurozone and has implications for Czech financial institutions. Commercial Bank said it expected higher funding costs to spill over into the Czech banking sector, which could affect demand for mortgage loans.
China sees unexpected merger announcement between tech giants Alibaba a JD.com, creating a common platform for exports to Europe. This move may also have an impact on the Czech e-commerce sector, especially companies such as or Mall Groupwhich face increasing competition from direct imports from Asia.
Business transactions and acquisitions
The acquisition of a software startup resonated in the domestic business environment today ReasTech by ČEZ ESCO. According to information close to both parties, the value of the transaction amounted to approximately CZK 320 million. The aim is to strengthen digital building management in the ČEZ ESCO portfolio.
In the construction industry, the company announced Metrostav successful conclusion of a contract with the Slovak government for the construction of the new R2 expressway worth CZK 6.8 billion. This project provides further evidence of the strong position of Czech construction companies on foreign markets.
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Current exchange rates according to the CNB and Google Rates
| Currency | Czech National Bank exchange rate (CZK) | Google Rate (CZK) |
|---|---|---|
| EUR | 24,60 | ~24,60 |
| USD | 21,57 | ~21,60 |
| PLN | 5,82 | ~5,76 |
| HUF | 0,0616 | ~0,0616 |
| GBP | 28,51 | ~28,51 |
| CHF | 26,42 | ~26,42 |
| CNY | 2,97 | ~2,97 |
| JPY | 0,1438 | ~0,1438 |
| RUB | - | ~0,27 |
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