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Czech GDP growth slowed down in 2002 to 2 %. Rebellious Industry and Trade Minister Jiri Rusnok has been replaced. Czech central banker says there is no need for another interest rate cut. Czech public debt keeps growing. The Czech Constitutional has granted small investors equal rights with the state as a shareholder. Czech retail sales grew 4.4 percent year-on-year in January, outstripping analysts' forecasts. The Czech Republic must pay Bermuda-based TV company CME more than 350 million US dollars in damages for failing to protect its investment.

The Czech Republic has attracted record volumes of foreign direct investment over the past few years. One of the reasons why the Czech Republic has been so successful in attracting foreign investors is the generous investment incentives and an all-inclusive assistance the Czech government provides to investors through its agency CzechInvest whose nine offices are scattered around the world. Ian Willoughby recently spoke to CzechInvest's director of operations in the UK and Ireland, Rene Samek, at his office on London's busy Harley St. Mr Samek

Czech consumer prices showed an annual decline for the second month running and there has been speculation that the Czech National Bank may further cut the interest rates. The Czech Republic's unemployment rate stagnates at a record high level of 10.2 percent. The Czech antimonopoly authority has fined the dominant telecommunications operator Czech Telecom for abusing its market position. Dominant Czech power producer CEZ is faring well at the German power exchange. After years of decline, Czech housing construction revived in 2002. Overall construction

In this weeks economic report we talk to the new director of the Czech Republic's dominant rail operator and largest employer, Ceske Drahy. And as usual we will recap some of the stories making economic headlines in the Czech Republic including: Struggling Union Banka closes its doors. The introduction of civil service law to be postponed one year. Skoda Auto agrees to a wage increase for employees. Employees at truck producer Tatra stage protest strike. Czech National Bank leaves interest rates unchanged and warns that inflation may increase in

In this weeks economics report we take a look at shifting trends in foreign direct investment in the Czech Republic. The government introduced incentive programs to bring more firms focussing in the technology sector to further diversifying the Czech economy. Now, the program is beginning to bear fruit.

The sale of the national telecommunications operator Czech Telecom has been postponed until 2005. Dispute over power sector consolidation continues. The cabinet has approved a package of measures to improve the business environment in the Czech Republic and support entrepreneurship but not without controversy. Czech steel production has grown in 2002 over a limit acceptable for the EU. Czech industrial output grew by a stronger-than-expected 6.6 percent in December. Czech retail sales rose by 4 percent year-on-year in December. The Czech government

The coalition government of the Social Democrats, and the junior partners the Christian Democrats and the right-of-centre Freedom Union cannot reach agreement over the controversial issue of state controlled rents for about 200,000 homes in the Czech Republic. A new proposal submitted by the Christian Democrats a week ago seems to have raised the temperature still more.

Some of the stories we follow in this weeks economics report include: Czech unemployment reaches record high. Consumers prices fall in January, Czech Republic experiences deflation for first time in history. Czech Republic's economic level to reach 59 percent of European Union average this year. LNM group purchases Czech Republic's largest steelmaker. Czech Airlines rases passenger numbers to a record 3 million. Sales of notebook computers up 23 percent 2002. Engineering firm Vitkovice launches 60 million Czech crown contract with Chinese

The Czech Republic may need another nuclear power station, says the Industry and Trade Minister Jiri Rusnok. The Czech ministers of trade and defence have been lobbying in India on behalf of the Czech military aircraft maker Aero Vodochody. Matsushita is planning to invest another 8 million USD in a R&D facility in Czech Republic. Mobile penetration is expected to reach 90 percent in 2003.

The head of the Czech Statistics Office (CSU) Marie Bohata resigned last Friday. The reason was a scandal that had shaken the credibility of the institution - the publishing of substantially wrong GDP figures for the third quarter of 2002 which influenced strategic decisions by the government and Czech National Bank as well as investors and ordinary people.