For the euro, the Czech currency was weaker than on Wednesday at the beginning of July, when the rate lasted several days over 26 CZK / EUR. The weakest was the krona in July, with a price of 26.13 CZK. "With the exception of short-term fluctuations in early July, the coruna is the weakest since September 2017," added ING Bank's chief economist for Czech Republic Jakub Seidler.
According to analyst Komerční banka, Monika Junick, statistics of Czech GDP contributed to the weakening. "According to her, the economy is growing slowly from all countries in the region," said Junick.
Region is growing faster
In the third quarter, the Czech economy slowed down the annual rate to 2.3 percent and quarter to quarter to 0.4 percent. On the other hand, Hungary's growth in the third quarter was 4.8 percent, even 5.1 percent in Poland. Slovakia's GDP then increased by 4.6% year.
"The Czech economy seems to have reached a strong mutual dependence on the German economy. During the third quarter, it was stagnant due to the difficulties in the automotive industry, which faces the transition to new emission tests and also suffer from the threat of World Trade War. US President Donald Trump continues to play with the idea of introducing tariffs on imports of European cars, "said Lukáš Kovanda, chief economist of the Czech Fund.
According to Seidler, the weakening of the krona is purely domestic. He believes that the Koruna will remain under pressure at the end of the year and will rather be on weaker levels. "We expect it to test the current lowest price of 26.18 euros per euro," he added. For the next year, it is expected that the krone will be over 25 kronor per euro and the average interest rate will be 25.60 CZK per euro.