The Czech News Agency reports that the Czech economy is running up against its upper limits as production capacity has been reached. But it adds that a strengthening currency contributed to a fall off in exports of 1.2 percent. “The strengthening of the exchange rate below CZK 25 (per euro) that could come by summer could prove to be a brake on expansion in our exports, said Jakub Červenka, an analyst for Raiffesien Bank. “It’s not insignificant that the threat of a trade war with the United States is hanging over the heads of exporters,” he said. Jiří Pour, an economist at UniCredit Bank, told ČTK that February’s lower exports and weakened industrial output numbers suggests that the Czech economy has hit its limits. “It’s another piece of the mosaic of falling overall EU demand for cars,” said Cyrrus’s chief economist Lukáš Kovanda.
