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Czech Republic economy overheating unemployment News

The Czech economy overheats

According to reports, the Czech Republic has become the most overheated economy in the OECD. The overheating of the Czech economy is closely connected with the situation on the labor market, where there has been long-term low unemployment, which is currently at a historic low

editor: REMIX NEWS
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Companies are facing a significant shortage of employees. At present, employers have more than 300,000 vacancies, compared to 224,000 people who are unemployed.

Inflation is currently another significant problem that the Czech National Bank (CNB) has been facing in the past several months. In June, its value was 0.7 percentage points higher than the CNB predicted, which was 2.6 percent. One reason is the rising price of oil and food, rising wages and, last but not least, weaker Czech koruna.

The main reason why interest rates are not at a level where they should ideally be is the limitations of CNB on the part of the European Central Bank (ECB). With this policy, within which it purchases corporate and public debts, ECB keeps low interest rates in the euro area economy.

As for other world countries and overheating, the Czech Republic has defeated Iceland, which is now second, and third being Slovenia. According to forecasts, the latter should skip the ideal situation next year by 4.5 percent, replace the Czech Republic and take first place.