Hope for Czech chemicals as GDP data shows improvement

Analysts forecasts just out suggest that Czech Republic will boast GDP growth of 1.2% in the first quarter (Q1) this year, pointing to a gradual, permanent revival of the economy this year. Construction should lead the recovery, good news for commodity chemical producers in the region.

According to the Prague Daily Monitor recovery will be slow, however, and GDP expansion will not surpass the 2-percent level this year, most of them said.

“So far everything indicates that the Czech economy will recover from recession this year,” said Raiffeisenbank’s Helena Horska. The economy will grow by around 1% this year, she said.

Ceska sporitelna analyst Jana Krajcova said the second quarter, when construction may show better results, will see a stronger revival.

Economic recovery in the Czech Republic lags behind Slovakia and Germany, according to Horska.

“Among the neighbouring states, only Hungary is worse off, its economy growing by 0.1 percent year-on-year,” said Horska.

Growth of big economies, above all Germany but also the USA, China, India and Brazil, has a positive effect on the Czech Republic, said Boris Dlouhy from the Confederation of Industry. Further development risks, however, still remain accompanied by less favourable reports from construction, investments and job creation areas, said Dlouhy.

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