Industrial production in the Czech Republic grew by 14.9% y/y in real terms in March 2021. It was higher by 3.2% m/m. The value of new orders increased by 23.0% y/y. The Czech Statistical Office informed that the high annual growth in production was recorded mainly in sectors that have been hit by a complete closure since mid-March last year (2020) and which are also very closely linked. That is the production of cars, where production increased by 47% y/y, the production of rubber and plastic products with a growth of 22% and the production of electrical equipment.
Export on the rise
The Export Index (IE), predicting the development of Czech exports based on statistical data, promises a double-digit increase in Czech exports in the next three months.
Among other things, a low comparative base will have a positive effect. Raiffeisenbank chief economist Helena Horská said that the export’s expansion to a precoronavirus level would be hindered mainly by lacking material and equipment for production. Association of Exporters vice chairman Otto Daněk added that inflation and corrosion of supplier-purchaser chains could also pose a risk.
Prepared by the team of CzechTrade Jakarta