For the euro, the Czech currency was weaker than on Wednesday at the beginning of July, when it spent a few days more than 26 CZK / EUR. The crown was the weakest in July, with a price of 26.13 CZK / EUR. "With the exception of short-term fluctuations in early July, the crown is the weakest since September 2017," said ING Bank chief economist Jakub Seidler.
According to analysts Komerční banka Monika Junick, statistics on Czech GDP contributed to the weakening. "In her opinion, the economy is growing slowly from all countries in the region," Junick said.
The region is growing rapidly
In the third quarter, the Czech economy slowed year-on-year growth to 2.3 percent, and a quarter to a quarter to 0.4 percent. By contrast, the year-on-year growth rate in Hungary in the third quarter amounted to 4.8 percent, even to 5.1 percent in Poland. The Slovak GDP then rose by 4.6% year on year.
It seems that the Czech economy is strongly interdependent with the German economy. In the third quarter, it stagnated due to problems in the automotive industry, facing the transition to new emissions tests and also suffering from the threat of a global trade war. US President Donald Trump continues to play the idea of introducing customs to import European cars, "said Lukas Kovanda, chief economist at the Czech Fund.
According to Seidler, the weakening of the crown is completely domestic. She believes that the crown will remain under pressure until the end of the year and will prefer to remain at weaker levels. "We expect to test the current minimum of EUR 26.18 per euro," he added. For the following year, the crown is expected to remain above 25 crowns per euro and the average rate will be 25.60 CZK per euro.