Page 38 - CE Outlook Regions 2024

to both industry and construction, which has been suffocated by high interest rates on mortgages.
3.1.6 Major Sectors
The largest agriculture conglomerate in the country, Agrofert, founded in the 1990s by the current opposition leader, populist billionaire Andrej Babis, sold one of its flagship assets in chemical industry - the Synthesia plant in Pardubice, to Kaprain investment group of former PPF manager Karel Prazak in September. The estimated CZK10bn (€0.4bn) acquisition turned Kaprain into a regional player on the market for special chemicals and also included the takeover of Agrofert’s media assets (Mafra publishing and Londa radio company). These have previously been a source of controversy to Babis, who has faced criticism of meddling with Mafra’s editorial policy to further his political goals.
3.2 Real economy - Baltic states
3.2.1 Retail
Retail sales in the Baltics were uneven at the end of 2023 and were likely to edge down in the first half of 2024 due to war, poor economic sentiment, seasonality and the lingering recession. Retail sales have been declining in the Baltics for a year, and businesses are forecasting a difficult start to 2024. Half of purchases are currently sold at discount.
The decrease was especially big in Estonia. Nele Peil, CEO of the Estonian Retailers' Association, said consumer confidence has reached a historic low. Almost half of products are sold discounted with merchant or manufacturer's profits minimal or non-existent.
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