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Czech producer prices have grown again in December. The government is likely to ask coal mine bidders to increase offers. Czech officials put pressure on Boeing over Aero's problems. Czech Airlines open new Prague air cargo terminal. Cabinet shortlists three bidders in Unipetrol privatisation. The Czech Republic has asked the World Bank and the European Bank for Reconstruction and Development to help it upgrade the bankruptcy law.

The Czech Republic's unemployment rate rose to a record high of 10.3 percent at the end of December, up from 9.9 percent in November. This is the highest figure since 1993. The Labour and Social Affairs Ministry said over 540,000 people were out of work. As compared to other Central and East European countries, the Czech figure is nearly twice the unemployment rate in Hungary but well below the more than 17 percent jobless rate in Poland. The average number of job applicant increased to 13.5, while a year ago, it was just 12.7. According to economic

Welcome to another edition of Economics Report. The unemployment rate has reached a record high and analysts predict that the worst is yet to come. More on that in a moment, but first, here is a review of the latest news.

The year 2003 saw Czech economic development gradually accelerate, mainly due to growth of household consumption, propelled by real wage growth and virtually non-existent inflation. Interest rates also hit rock bottom. However, unemployment reached a record high. 2003 was also a year of hot debate over much-needed public finance reforms. Finally approved before the end of the year, the first package of measures aimed at curbing the worrying public finance deficit came into force as of January 1, 2004. This year, the Czech Republic also joins the

When you ask about Czech exports, the most common answer will be beer, trams, cars, machinery, and glass. Few people would know about the less usual yet highly successful export items, such as wooden toys, paddles and oars, as well as for example police weapons such as truncheons, and granite and marble tombstones. In some cases, Czech products have a significant share of or dominate local markets in other countries.

Czech producer prices grow, so does industrial output. Committee recommends selling Severoceske Doly coalmine to Czech-Slovak investment bank J&T. Czech president signs 2004 budget. Former telecoms monopoly sues market regulator over tariffs.

The government has presented a pension reform proposal as the first government since 1989 to have the courage to make any real steps towards what no-one doubts is urgently needed. However, while Trade Unions expres worries about the pensions of low-income groups, analysts say the proposal seems like "too little, too late".

Unemployment rate stagnates at 9.9 percent in November. GDP grows by record 3.4 percent in third quarter driven by household consumption. November marks the end of deflationary development in the Czech Republic. Four bidders interested in two Czech brown coal mines. US Boeing asks government to pay Aero's debts, threatens to exit. Government makes a deal with mobile operators to speed up payments for UMTS licences in return for delay in launch of services. Telecommunications Office calls a public tender for three FWA licences in Prague.

Central Bank sees higher CPI risks, but not as a problem. SEC launches new system to detect dubious deals. Czech power utility CEZ to bid for Slovak Slovenske Elektrarne. Business confidence cools down in November. Government to issue more state bonds to finance budget deficit. Coal barons charged with misuse of insider information.

Wages in the Czech Republic are the second highest out of ten accession countries slated to join the European Union next year. Considering the virtually non-existent inflation and relatively slow growth in labour productivity, we ask an expert about the sustainability of wage development.