Car registrations grew in 1Q24

On the radar

• Current account balance in Slovakia posted a surplus of EUR 88 million, while in Serbia current account was in deficit of EUR -195.8 million.

• Today, producer prices will be published in Slovenia at 10.30 AM CET.

• At 11 AM CET Croatia will release the labor market data: unemployment and real wage growth.

Economic developments

In March 2024, the European Union car market experienced its first decline of the year, registering a 5.2% decrease to 1 million units. In CEE7 region similar development was observed. The number of cars registered went down more visibly in March in Czechia, Romania and Slovakia. On the other hand, in Hungary, new car registrations increased visibly by 12% y/y in March. When we look at the development over the first quarter of the year, then the new car registrations in the region are higher this year by 6.2% y/y compared to the respective period of the previous year.

Market developments

This week, the Hungarian forint and Polish zloty have been weaker against the euro, while the Czech koruna has strengthened. The Czech central banker Prochazka was quite explicit about the pace of monetary easing in Czechia that central bank should maintain the current pace of 50 basis points cut on the upcoming meeting and beyond. On one hand, the development in the US and the stance of the Fed prevent from accelerating monetary easing, on the other hand economy does not signal that slower pace would be needed. The long-term yields continue to rise.

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