The IMF lowered Polish GDP forecast

(World Bank Photo Collection, CC BY-NC-ND)

Slovakia: draft of the budget 2017 approved

Minimum wage increase in Czech Republic

Romania want to sell 6.4 per cent stake in OMV Petrom

Poland

The International Monetary Fund (IMF) has lowered its forecast for Polish GDP growth in 2016 to 3.1 per cent from 3.5 per cent. At the same time the forecast for 2017 has been lowered to 3.4 per cent. Earlier this year, the IMF had predicted growth of 3.7 per cent.

The Polish Radio reports the data from IMF’s „October World Economic Outlook report”. It quotes the report: „Hungary’s and Poland’s [inflation] rates are projected to recover slowly from very weak levels in 2015”.

The governor of the Polish central bank, NBP, Prof. Adam Glapiński said that this is a very good growth according to the predictions. “If such growth level would continue for the next years Poles may become happy citizens,” he said.

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Slovakia

Slovak government approved the draft of the general government budget for 2017-2019 at its session on October 5th. According to the draft the country should see a surplus of 0.16 per cent in 2019. It’s based on predictions of gradual decrease in the general budget deficit – it will fall to 1.29 per cent of GDP in 2017 and 0.44 per cent of GDP in 2018.

The Slovak Spectator cites the press release of the Finance Ministry: “The budget is based on the current macroeconomic situation in Slovakia which predicts for the country, compared with other European states, an above-average economic growth at 3.5 per cent of GDP for next year”.

The total income in 2017 will reach EUR15.415bn and expenditures will amount to EUR17.432bn. The Finance Ministry of Slovakia explained: „The income will be impacted by the tax changes that should be soon discussed by the parliament. This includes the drop in corporate income tax by 1 percentage point to 21 per cent and the increase in lump-sum allowances for self-proprietors from 40 to 60 percent”. A new tax on dividends and changing fees for regulated industries will be introduced.

In the connection with the information on new 2017 budget, Bloomberg agency reported that Slovakia may sell more debt in 2017 „as the country readiness to pay down maturing bonds and legislation prevents it from accelerating borrowing this year”. „The euro-area member may issue as much as EUR6.7bn in 2017 (…) The country will also seek to raise between EUR1.3bn and EUR1.7bn by end-2016, adding to EUR4.1bn from the first nine months,” Bloomberg quotes Daniel Bytcanek, the head of the agency Ardal.

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Czech Republic

The government of Bohumil Sobotka decided to raise the country’s monthly minimum wage from the current CZK9,900 (EUR366) to CZK11,000 (EUR407). Sobotka confirmed it on Twitter: „Working has to pay off. Wages should rise still more in the future!”. As Radio Praha informs, this is the third boost „over a relatively short period aimed at improving the pay for around 115,000 workers”. The radio points out the move will cost Czech employers an additional CZK3.5bn in salaries and that it can impact a wave of layoffs.

The portal quotes Jan Wiesner, the head of the Confederation of Employers’ and Entrepreneur’s Association of the Czech Republic: “I think it will have an impact on businesses. In our negotiations with the government we pushed for the rise to be to around 10,600. Many employers already have collective contracts which are higher but we think this will impact smaller firms”.

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Romania

Romania’s investment fund Fondul Proprietatea sells 6.4 per cent of OMV Petrom in Bucharest and London. The value of the transaction will reach EUR200m. „The secondary public offering (SPO) will take place at the same time on the Bucharest Stock Exchange and London Stock Exchange. After the offer is finalized, OMV Petrom will become the third Romanian company traded on the London Stock Exchange, after gas producer Romgaz and electricity distributor Electrica,” Romania Insider informs.

The portal also reports Romania’s Financial Supervisory Authority (ASF) approved the SPO prospectus on October 5th. The offering starts on October 6th and ends on October 13th. The offering is addressed to both institutional investors and individuals. At the moment Fondul Proprietatea owns 19 per cent of OMV Petrom’s shares.

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What’s up in indexes

BUX (of Budapest) decreased from 28570.99 index points Tuesday, October 4th to 28487.05 index points Wednesday, October 5th. So it dropped by 0.29 per cent d/d. From year-end it’s up 19.09 per cent.

BET (of Bucharest Stock Exchange) decreased from 6978.96 index points Tuesday, October 4th to 6963.66 index points Wednesday, October 5th.  So it dropped by 0.22 per cent d/d. From year-end it dropped by 0.55 per cent.

PX (of Prague) was up 0.68 per cent d/d – increasing from 875.13 index points Tuesday, October 4th to 881.09 index points Wednesday, October 5th. From year-end it dropped by 7.87 per cent.

WIG20 (of Warsaw) was up 0.47 per cent d/d – increasing from 1754.04 index points Tuesday, October 4th to 1762.23 index points Wednesday, October 5th. From year-end it dropped by 5.21 per cent.

OMXT (of Tallinn) decreased from 1004.56 index points Tuesday, October 4th to 1003.92 index points Wednesday, October 5th. So it dropped by 0.06 per cent d/d. From year-end it’s up 11.67 per cent.

OMXR (of Riga) was up 1.40 per cent d/d and up 21.56 per cent from year-end. It increased from 712.50 index points Tuesday, October 4th to 722.51 index points Wednesday, October 5th.

OMXV (of Vilnius) dropped by 0.03 per cent – falling from 545.66 index points Tuesday, October 4th to 545.47 index points Wednesday, October 5th. From year-end it’s up 12.24 per cent.

SAX (od Bratislava) dropped by 0.07 per cent d/d – falling from 309.94 index points Tuesday, October 4th to 309.72 index points Wednesday, October 5th. From year-end it’s up 5.94 per cent.

SOFIX (of Sofia) dropped by 0.12 per cent d/d – falling from 509.49 index points Tuesday, October 4th to 508.89 index points Wednesday, October 5th. From year-end it’s up 10.41 per cent.

UX (of Kyiv) dropped by 0.52 – falling from 832.32 index points Tuesday, October 4th to 828.02 index points Wednesday, October 5th. From year-end it’s up 20.73 per cent.

CROBEX (of Zagreb) was up 0.41 per cent – increasing from 1957.53 index points Tuesday, October 4th to 1965.48 index points Wednesday, October 5th. From year-end it’s up 16.33 per cent.

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