Confidence in the Czech economy grew to 89.7 points

Published: 22.03.2021 Related countries:  Czech Republic Czech Republic

Confidence in the Czech economy grows but it is still considerably lower than its pre-pandemic level.

Based on the information from the Czech Statistical Bureau, confidence in the Czech Republic’s economy grew by 2,4 points form 87.4 in January 2021 to 89.7 in February. While higher confidence level is displayed mainly among entrepreneurs, consumer’s confidence decreased. However, the economy is yet to recover its level of confidence form February 2020.

Entrepreneurs’ confidence in the Czech economy grew to 90.6 points in February, increasing across all industries except trade. Notably, the confidence value for entrepreneurs in manufacturing rose to 97.1 points, for entrepreneurs in construction to 114.6 points, for entrepreneurs in services to 81.9 points.

On the other hand, the confidence level among consumers decreased by 3.5 to 85 points. Consumers fear deterioration of the economic and their financial situation. The amount of people expecting the growth of unemployment and rising consumers prices in the next 12 months increased.

The compounded confidence indicator for the whole of the Czech economy had been stable between 2014 and the beginning of last year, hovering around 100 points. The COVID-19 pandemic caused for the indicator to drop below 80 points in April – a value last seen during the economic crisis in 2009.

Source: Czech Press Agency, CzechTrade team Calgary