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The Czechs have been tightening their belts for months. They can go out of business because of it

According to statistics, the Czechs have been tightening their belts for the ninth month. Retail sales are falling, savings are being made on food and apartment furnishings and even less shopping is being done on the Internet. According to experts, stores may soon go bankrupt because of this, especially in small towns.

In the Czech Republic, savings are made where possible. In addition to the fact that the Czechs have become champions in energy saving, they are now trying to reduce other expenses as well. “They save because the real value of their wages is declining due to inflation. Inflation is a fundamental problem for the Czech economy, if it is not solved, unfortunately, Czech families will have to save,” economist David Marek noted.

This is also confirmed by statistics, the greatest savings on food are made in the Czech Republic. According to them, people have also limited the purchase of goods for the home and in online stores. On the contrary, more is spent on fuel or clothing.

“In general, people refuse to buy expensive items that can be put away, but they also save in the form they like to buy cheaper food than they used to buy until now,” Marek said.

According to economists, now people have also started saving on beer, and now they prefer to enjoy it at home rather than in a pub. According to experts, bars and shops in small towns are about to survive, as they have not yet experienced a long-term decline in sales.

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“Lower sales also mean smaller production volumes, so it also affects manufacturers,” said Tomáš Prouza, President of the Trade and Tourism Association.

However, the decline in sales is not a problem for all EU countries, for example, sales are increasing in Poland, perhaps thanks to the Czechs who go there in search of cheaper. “When Czechs go shopping in Poland, it reduces the sales of Czech merchants. At the same time, it also affects taxes, when it is beneficial for Czechs to go to Poland, for example, to buy tobacco products. Standard setting in individual countries , and how they will support their merchants. At the moment, it seems that Czech businessmen do not have much support, ”said economist Stepan Kocek.

“If the government really wants to help people, they will have to lower the VAT on food, it’s simply unfair when in Poland they don’t have VAT, in the Czech Republic we have 15 percent and everyone here thinks it’s normal for VAT to be on “Beer is lower than the value-added tax on fruits and vegetables,” Broza said.

Interest in mortgages has decreased significantly. High interest rates are the reason: