The Czech koruna declined today as the nation’s economy remained in recession. Combination of the domestic weakness and the problems of the eurozone, which hurt prospects for Czech exports, suggests that the economy will not return to growth soon.
The Czech Statistics Office reported that Czech gross domestic product shrank 0.2 percent in the fourth quarter of 2012 from the previous three months, registering the fourth consecutive quarterly decline. The report revealed that the weak domestic situation was the main driver of recession:
Contributions of individual demand components to the GDP development were highly differentiated â a positive influence of the external trade was not able to compensate the decrease in final consumption expenditure of households and drop of expenditure on fixed capital formation.
The Czech Republic was just one of many European countries, including Hungary, that continued to suffer from the financial crisis.
USD/CZK rose from 18.8520 to 19.0135 as of 15:08 GMT today.
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