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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- Government approved the Convergence Programme at its meeting on Monday, in which the Finance Ministry envisages:
- a 8.8% deficit (of GDP) this year, followed by a 5.9% deficit in 2022 . Last year, the public finance deficit was of 6.2% of the country's GDP.
- Czech FinMin Alena Schillerova also mentioned that the programme envisages a 3.1% real GDP growth this year and a 3.7% expansion in 2022, respectively. Real GDP growth in then expected to decelerate to 1.9% and 2.1% in 2023 and 2024, respectively.
- Inflation is also unlikely to surpass 2.3% this year, which is in line with the sell-side average forecasts for 2021. The chart below shows that sell-side firms have been forecasting CPI inflation to average 2.3% in 2021 before easing down to 2.2% in 2022 and then 2.05% in 2023, respectively.
- In the past week, we have seen that the CZK has remained strong against major crosses despite rising political uncertainty amid diplomatic spat between Prague and Moscow. The 10Y yield has also remained steady in the past few days, strongly supported by its 50D SMA (at 1.81%).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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