The lowest paid Czech will earn more in 2019
IMF on Ukraine: this is not what we expected
In November 2018 the volume of industrial production in Hungary grew by 4.0 per cent y/y (unadjusted figures) or by 3.5 per cent (working-day adjusted data) – the Budapest Business Journal reports after the Central Statistical Office, KSH. Preliminary data was published on Tuesday, January 8th. As informed, the majority of manufacturing subsections contributed to the increase. Manufacturing of transport equipment and of computer, electronic and optical products went up remarkably. Also the production of food, beverages and tobacco was higher than a year earlier. At the same time, the country’s industrial production decreased by 1.1 per cent m/m in the period mentioned (data adjusted seasonally and for working days). In October 2018 it was 2.0 per cent.
According to the experts, “2019 might bring slightly stronger performance with a growth rate of roughly 5 per cent y/y on average on the back of newly built capacity”. Still there are some downside risks stemming from the poor eurozone outlook.
In 2019 the Czech employees with the poorest earnings will get more than in 2019. Since January, 2019 the minimum monthly wage in the country is CZK13,350 (around EUR522) – it increased by CZK1,150 (EUR45) from CZK12,200 (EUR477). The Czech Republic is among the EU countries with the lowest minimum monthly wage. Since 2013 it’s been increasing (in the period 2007-2013 it remained stagnant at CZK8,000).
Czech political parties agreed that higher wages always bring higher tax duties and higher health insurance payments, and social contributions for both employees and employers. As reported, in 2018 minimum wage was approximately 37.3 per cent of the average salary in the Czech Republic. With the most recent increase, it will be about 38.3 per cent of the average monthly salary. “In my opinion, this is an acceptable compromise between the demands of trade unions and employers” – Czech Labor Minister Jana Maláčová comments.
The International Monetary Fund (IMF) claims that Ukraine’s economic growth is weak and that it will be in predictable future – the Interfax reports. “Investment, particularly foreign direct investment, are held back by a difficult business environment, while large numbers of worker seek job opportunities abroad as economic growth is too low for incomes to noticeably close the gap with regional peers” – the IMF points out in its report on the country.
The IMF praises Ukrainian government for restoring stability and bringing back the economic growth after the crisis that burst after the Russian invasion of the Eastern part of the country in 2014-2015. “However, efforts to create a more dynamic, open, and competitive economy have fallen short of expectations, and the economy still faces important challenges” – the IMF concludes.
What’s up in indexes
BET (of Bucharest) decreased from 7,678.83 index point Monday, January 7th to 7,565.16 index points Tuesday, January 8th. It’s down 1.51 per cent y/y and down 5.23 per cent y/y.
BUX (of Budapest) increased from 40,569.00 index point Monday, January 7th to 40,810.00 index points Tuesday, January 8th. It’s up 0.59 per cent d/d and up 1.76 per cent y/y.
CROBEX (of Zagreb) increased from 1,726.78 index points Monday, January 7th to 1,732.66 index points Tuesday, January 8th. It’s up 0.34 per cent d/d and down 4.66 per cent y/y.
OMXR (of Riga) increased from 952.65 index point Monday, January 7th to 972.05 index points Tuesday, January 8th. It’s up 2.04 per cent d/d and down 5.77 per cent y/y.
OMXT (of Tallinn) increased from 1,169.66 index point Monday, January 7th to 1,178.90 index points Tuesday, January 8th. It’s up 0.79 per cent d/d and down 7.03 per cent y/y.
OMXV (of Vilnius) increased from 625.92 index point Monday, January 7th to 626.07 index points Tuesday, January 8th. It’s up 0.02 per cent d/d and down 6.43 per cent y/y.
PX (of Prague) increased from 1,008.56 index point Monday, January 7th to 1,014.36 index points Tuesday, January 8th. It’s up 0.58 per cent d/d and down 8.53 per cent y/y.
SAX (of Bratislava) closed at 335.12 index points Tuesday, January 8th. It’s the same result as Monday’s. It’s 0 per cent change d/d and up 2.84 per cent y/y.
SOFIX (of Sofia) increased from 577.10 index point Monday, January 7th to 577.30 index points Tuesday, January 8th. It’s up 0.03 per cent d/d and down 16.20 per cent y/y.
UX (of Kyiv) closed at 1,710.65 index points Tuesday, January 8th. It’s the same result as Friday’s. It’s 0 per cent change d/d and up 23.92 per cent y/y.
WIG20 (of Warsaw) decreased from 2,331.45 index point Monday, January 7th to 2,325.19 index points Tuesday, January 8th. It’s down 0.27 per cent d/d and down 8.77 per cent y/y.