The Czech Statistics Office is reporting that the recession in the Czech Republic has deepened, a finding that is surprising some economists who assumed improved numbers in Germany would have a positive impact. Germany’s economy expanded 1.2 percent in Q1 2012, twice as much as anticipated. By comparison, the Czech economy slipped 1 percent. David Marek of Patria Finance told Hospodarske noviny the cause is simple: weak demand on all fronts. He says real wages are falling, and consumers are behaving accordingly. But the paper also quotes another renowned economist Pavel Sobisek (UniCredit) who believes the numbers don’t add up. He believes the economy is merely stagnating and that future numbers will reflect that reality.
