Economic news from the Czech Republic: overview of the past week: ORLEN, MERO, TAL, ECB, gold (Feb 17-23, 2025)

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Overview of the latest economic events in the Czech Republic

Last week, the Czech government approved a new package of economic measures aimed at supporting small and medium-sized enterprises. This package includes tax breaks, soft loans and innovation subsidies, with the aim of strengthening the competitiveness of Czech companies on the European market. The Ministry of Finance also announced that the Czech Republic received CZK 83.2 billion more from the EU budget last year than it contributed to it, strengthening the country's fiscal stability. Furthermore, a new contract was concluded between MERO ČR and ORLEN Unipetrol for the transport of crude oil, which will ensure greater security and reliability of the Czech Republic's oil supply. The TAL-PLUS project, aimed at expanding the capacity of the TAL pipeline, is nearing completion, which will increase the country's energy security.

Foreign Investment - Trends and Highlights: Weekly Review

The US company Amazon has announced plans to open a new logistics centre in Brno, representing an investment of CZK 3 billion. The move will strengthen the distribution of goods in Central and Eastern Europe and create up to 2,000 new jobs. The Japanese carmaker Toyota plans to invest CZK 4 billion to expand its production plant in Cologne, which focuses on the production of hybrid and electric vehicles. This investment will create around 500 new jobs and strengthen the Czech Republic's position in the automotive industry. Tesla also announced its intention to build a research and development centre focused on battery technology, with an investment of CZK 5 billion, which will create an additional 500 highly skilled jobs.

Significant events outside the Czech Republic with global impact

The US Federal Reserve (Fed) signalled the possibility of raising interest rates in response to rising inflation and a strong labour market. The announcement has sparked volatility in global financial markets, with investors reassessing their strategies in anticipation of tighter monetary policy. The European Central Bank (ECB) has also hinted at a possible tightening of monetary policy in response to rising inflation in the eurozone, which could affect credit conditions and investment activity across Europe. The Organisation of the Petroleum Exporting Countries (OPEC) announced a plan to cut oil production by 1 million barrels per day to stabilise the market and support oil price growth, which may affect global inflation and transport costs.

Practical information for investors on international markets

Investors should consider diversifying their portfolios in light of current economic conditions and geopolitical events. Rising inflation and possible changes in monetary policy in Europe and the US may affect bond and equity returns. It is recommended to focus on sectors less sensitive to interest rates, such as technology, healthcare or renewable energy. Investments in commodities such as gold can serve as a hedge against inflation. It is important to monitor developments in emerging markets, which can offer interesting opportunities but also carry higher risks. Regularly evaluating and adjusting your investment strategy in response to market changes is key to long-term success.

Current Bitcoin development

As of February 23, 2025, the Bitcoin price is around $98,000, an increase of 1.5 % from the previous day. Over the past month, Bitcoin has appreciated by 6 %, indicating renewed investor interest in cryptocurrencies. Analysts attribute this growth to increased institutional interest and positive regulatory moves in key economies. However, investors should be mindful of the high volatility of cryptocurrency markets and consider their investment strategies carefully. It is advisable to monitor current news and analysis in order to respond to rapidly changing market conditions.

Current exchange rates according to the CNB and Google Rates