Czech government officials confirm slide into recession

In an interview given for IHT, the Governor of Central Bank of the Czech Republic has confirmed the possibility for the country to slide into recession, estimating a drop of almost 2 percent for the economy in 2009. This official position contradicts the repeated statements of the finance minister and prime minister. According to them, the Czech Republic is the least affected country in Central and Eastern Europe. Informal communication of CPP Management Consultants with the main luxury brands in Prague confirmed drops of up to 20 percent on all segments of the luxury industry. Highest drops were recorded on the jewelry/watches and hospitality segments. These drops do not come as a surprise for analysts of the luxury industry, since the luxury market in the Czech Republic targets foreign tourists for more than 60 percent of all income.