...May 16, 2024 - We believe the Czech economy will expand by 1.25% in 2024, after an estimated real GDP contraction of 0.3% in 2023. The labor market remains resilient with strong employment and disposable income figures. - The rapid disinflation and further cuts of policy rates by the central bank will support financial conditions in the country, in our view. The price correction in the housing market has likely bottomed out, and we expect residential real estate prices to rise again in 2024. - The Czech banking sector should benefit from pent-up loan demand thanks to households' stronger consumer confidence and corporates' higher investment appetite. We expect a mild increase of credit losses and nonperforming loans in 2024 because of what we view as delayed effects of the higher interest rate environment. - We have affirmed our ratings on Ceska Sporitelna. The ratings on Ceskoslovenska Obchodni Banka and Komercni Banka are unaffected by our banking sector review. - We revised our rating...
