A slight revival of the economy is forecast for the second half of 1999, when the depreciation of the exchange rate of koruna should show itself and the growth of goods exports goods should accelerate. On the other hand, net exports should affect GDP trends positively. External trade and trade balance As indicated by the results for the first two months, the year 1999 will bring substantial changes in comparison with trends recorded for the previous two years. This primarily holds for big slow-down of the growth of goods exports and imports. It becomes evident that the year 1999 is going to be very difficult for exporters of goods from the CR to partner countries most of which expect deceleration of economic growth.
Similar trends are also envisaged for imports of goods.
EU member countries, including our biggest trade partner Germany, have altered their forecasts and anticipate lower imports of goods. CZK is supposed to be slightly below its 1998 level. Prices, wages and unemployment Envisaged for the area of prices, wages and unemployment in 1999 and 2000 are also considerable changes in comparison with previous years. They will include slower price development, higher rate of unemployment and growth of real wages. In fact, this already occurred at the beginning of the year when price movement rapidly became slower.