VW scandal might dent Czech GDP in 2016 - paper

PRAGUE (Reuters) - The Volkswagen emissions scandal might cut up to 0.2 percentage points off Czech economic growth in 2016, a Finance Ministry spokeswoman told Czech daily paper Pravo. Volkswagen, Europe's biggest carmaker, faces the worst business crisis in its history after it admitted cheating diesel emissions tests in the United States, with 11 million vehicles affected worldwide, including around 1.2 million cars sold under the Czech Skoda brand. "Given the direct involvement of (Volkswagen's) Skoda Auto in the case of manipulation with emission checks it is possible, in the most extreme case, to see the risk of a slightly slower growth by 0.1-0.2 percentage points," Finance Ministry spokeswoman Katerina Vaidisova told Pravo. The Finance Ministry has said previously it saw 2.5 percent GDP growth in 2016. The Czech Car Importers Association said on Monday that Czech car sales should jump by 20 percent to a record of more than 230,000 vehicles in 2015, predicting little impact from the scandal over Volkswagen's rigging of emissions tests. However, some Czech ministers and analysts are expecting some hit to the economy due to the country's deep connections with the German supply chain. (Reporting by Robert Muller; editing by Adrian Croft)