Confidence in the Czech economy grew by 0.1 point to 95.4 in July among business owners, however it fell in the eyes of consumers, according to the weekly Tyden. Overall confidence in the health of the economy has slipped 0.7 points since July 2014. Komerční banka analyst Marke Dřímal warned moreover that consumer confidence was at a two-year low. “People are worried about the worsening economic situation,” he said adding that the situation could worsen thanks to the Brexit vote in the UK last month. “The outlook for the Czech economy isn’t as rosy as it was last year when GDP was rising at an extraordinary pace.”
The chief economist of the Czech Banking Association Eva Zamrazilová told the weekly that consumers are sending mixed signals. “The difference may be caused by a reaction to the media’s depiction of Brexit, which is producing fears of a possible weakening of the economy, but on the other hand, consumers aren’t feeling it,” she said.
