The Czech economy is expected to grow by 2.6 percent this year, following a
3 percent expansion in 2018, according to the latest forecast from
For the coming year, the European Commission foresees growth of 2.5 percent, again mainly fuelled by solid growth in household consumption, with investment growth expected to ‘normalise’.
Private consumption is likely to remain the main growth driver and should continue to benefit from swift growth in wages and pension incomes, and robust consumer confidence, the EC said.
The trade balance is set to deteriorate over the forecast horizon and detract from GDP growth in 2019, before turning neutral in 2020, the forecast says.
The Czech Republic’s economic growth is expected to continue at a rate of around 2.5 percent, the International Monetary Fund predicted in a press release on Thursday. Inflation is expected to go down and unemployment levels will rise. The head of the organisation also warned of the large impact that American tolls on European products would have on the Czech economy.
The European Commission has revised its outlook for the growth of the Czech
economy this year downwards. It said on Tuesday that gross domestic product
was likely to expand by 2.6 percent in 2019, down from the 2.9 percent it
forecast in February.
The European Commission said it expected growth next year to reach 2.4 percent. Earlier this year it predicted a figure of 2.7 percent for 2020.
Officials also said they believed Czech unemployment would this year remain at 2.2 percent and would climb next year to 2.3 percent.
The Czech economy grew 2.8 percent year on year in the final quarter of 2018, above market expectations, revised data released on Friday by the Czech Statistical Office show. Analysts said it sent a positive signal that domestic growth remains sold despite a downturn in the Eurozone, and in particular Germany, the Czech Republic’s main export market.
The Czech Republic’s continued economic growth offers an opportunity to intensify its structural reforms, suggests the annual report of the European Commission, assessing the economic and social situation in EU members states. However, it also warns of increasing regional disparities, masked by the continued rise in living standards.
Czech industrial production grew by 6.7 percent year on year in October,
after somewhat weaker performance in recent months, data from the Czech
Statistical Office show.
New orders reached double digit growth, suggesting that recent weakness could be related to one-offs.
Manufacturing grew by 7.7 percent, supported by strong automobile production, up 8.8 percent in annual terms after falling in the previous two months.