A steep 7% year-on-year growth. That is how the Czech retailing experienced the seventh month of 2019. Driven mainly by an increase (21.7%) in online shopping and mail order, computer and communications appliances (14.8%) and freetime goods (11.1%), the Czech economy enjoyed a significant strength of local households. Economists, who ascribe the Czechs’ generous spending to the overheated job market, report that July’s sales in the sector have been the highest since January 2018. Despite the optimistic Czech buying behavior, analysts are sceptical about the sustainability of the upward trend. Foreign economies, especially Germany, are slowing down and wages will also stop growing at some point.
Prepared by the team of foreign office CzechTrade San Francisco