Czech export to rise by 2-2.5% in 2019

The Czech Confederation of Industry expects Czech exports to record a 2-2.5 percent hike for this year and hit about Kc4,500bn in the cross-border concept and Kc3,700 in the national concept, said the confederation's economy policy section head Bohuslav Cizek.

Exports will increase by 2 percent to Kc4,600bn in the cross-border concept in 2020, Cizek said.
The growth will slow down because of a smaller economic expansion of European countries, stagnating international trade and uncertainties mainly concerning the US trade policy, he said.
Problems with getting new contracts were revealed in a regular survey conducted by the confederation and the central bank.

The share of companies reporting a drop in foreign demand has been growing for over a year, and hit 17 percent in Q3. A mere 8 percent registered higher interest in their products abroad.
In January-October, exports amounted to Kc3,800bn in the cross-border concept, up by 4.7 percent year on year. Exports to the EU accounted for 84 percent.

Exports to Cyprus grew the most (54 percent), followed by Denmark (18 percent) and Lithuania (15 percent). The volume heading to Ireland, on the other hand, recorded the biggest drop of 24 percent.
Exports to Germany, Czechia's largest partner, went up by 2.7 percent, exceeding the growth rate of the German economy, and exports to Britain rose by 1.9 percent.

The steel industry is especially problematic, dropping because of stagnation in the European manufacturing industry, export and investment.

The trend is not expected to change before the second half of 2020, being impacted also by high investment because of stricter environmental regulations.

Czech engineering companies will see their exports decrease by units of percent this year over postponed investments of their main customers - the car industry. Last year registered a record-breaking export in the segment.

There are still uncertainties in the car industry concerning electromobility and the condition of German companies, Cizek said.

Provided Britain leaves the EU with a deal, nothing will change for exporters during the transition period which will last until the end of 2020, the confederation's international relations section head Lukas Mertin said.

However, the transition period may be extended to gain more time to come up with a long-term trade deal between the EU and Britain, Martin said.

The Exporters Association estimates that exports will hit record Kc3,700bn in the national concept this year, and over Kc4,500bn in the cross-border concept, growing for about eight years in a row, the association deputy chairman Otto Danek said in October.

Source: CTK