Country's Beer Production Up 1.4% In H112
News: Beer production in the Czech Republic increased 1.4% year-on-year (y-o-y) in H112 (ended June), according to data by trade body the Czech Breweries and Malthouses Association (CBMA). The rise has been attributed to an increase in the number of tourists visiting the country during the reported period and the growing popularity of 'radlers', an equal mix of beer and lemonade, said Jan Vesely, the director of CBMA. Of the total production in H112, exports accounted for around 19%, Vesely said. The top three markets were Germany, Slovakia and the UK respectively.
BMI View: The Czech consumer outlook continues to remain extremely challenging. Nonetheless, we hold to our forecast for the Czech Republic to avoid a full-year recession in 2012 and forecast economic growth of 0.1% year-on-year (y-o-y) before then recovering to 1.3% y-o-y in 2013. A combination of fiscal austerity and uncertainty surrounding the future of the eurozone, to which the Czech Republic is heftily exposed, will continue to impact on household consumption.