Where’s best to invest? Millionaires from Czechia and Slovakia say investing in foreign companies and real estate is your best bet for enhancing wealth in 2023, according to a survey by J&T Banka. Almost 1 in 3-dollar millionaires in both countries believe that land and building plots are the “most promising investment” for this year. Investment in foreign shares is viewed positively, as it is seen as one of “the only tools” that protects against inflation. Perceptions of cryptocurrencies, however, markedly declined. Furthermore, millionaires saw investment in start-ups as a worse option this year than in 2022.
Lower interest rates? The board of Czechia’s central bank is considering lowering interest rates in the third quarter should the economy develop as predicted, Reuters writes. The current interest rate is 7%. Declining inflation – expected to reach single digits in the second half of this year, although currently at over 15% – will determine whether the rates can be lowered. A wage-inflation spiral in Czechia or a loosening of monetary policy by global central banks could prevent the reduction of inflation.
No more koruna? A recent survey by the Czech branch of accounting firm PwC found that one-quarter of CEOs in the country would favour the adoption of the euro in the current economic situation. According to those backing the currency, it would help create a “predictable business environment.” Some CEOs believe that euro adoption would also help curb inflation in Czechia. According to its current statement of aims, the government wishes to adopt the euro by late 2025.