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Czech GDP (Q3 2022) & Manufacturing PMIs (Oct.)

The 0.4% q/q contraction in Czech GDP in Q3 provides the first clear sign that the economy as a whole is buckling. We think the economy is now in a recession which will last until early next year. Meanwhile, the manufacturing PMIs for October underscore the challenges facing the region as a whole and point to y/y contractions in production in Czechia and Turkey at the start of Q4.

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