Tuesday May 24, 2022

Czech Republic is becoming the entrance of Europe in Europe, with American television

According to the American television CNBC, the Czech Republic is applying for the title of “Swiss Entrance Europe”. At least for investors who are looking for a new safe state of origin, what the first country set a ceiling for the franc gym for their sake. R, has a strong economy and a stable currency, could replace them.

“Economic growth in the Czech Republic ahead of the growth of many EU countries and the ratio of its debt to gross domestic product is only 38 percent. And the agency’s international ratings have improved in their insights. At the arrest of another country, the Standard and Poor’s agency increased the rating by two degrees to AA-, and now it is above Italy over several countries in the euro area, ”said TV’s economic change on its website.

She quoted the opinion of analyst Simon Quijan-Evans from ING, according to whom he is still a safe pause, which will delay the central bank’s rate with the ECB and a relatively robust currency for years.

The NB last week left the two-day repo rate a record low at 0.75 percent. Unlike in the past, she indicated that she was willing to consider another dream. “We can’t just imagine that the years of the rate have only to go up,” said Governor Miroslav Singer.

CNBC reminded that the Czech Republic, unlike other countries in Central and Eastern Europe, does not have to worry about rising prices. Inflation fell to 1.7 percent in August, below the 2% inflation rate. “It is the Swiss entrance of Europe, especially after the care of the Central Bank of Hungary,” said Gyula Toth from UniCredit Bank.

However, CNBC notes that dark clouds may be on the horizon as the economy of Germany, its main trading partner, becomes stagnant. “We believe that GDP growth will slow slightly in the coming quarters due to the expected further decline,” said analyst Vojtch Benda from ING.

Moreover, it would not have to be favorable for the Czech Republic if investors actually started to consider them as the Czech entrance of Europe. This would mean strengthening the koruna, which would complicate the situation for many companies, develop them. R would then – as well as Switzerland – have to have problems caused by a sharp gym.

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