Czech National Bank lowers its forecast on public finances and GDP growth

03-05-2019

The Czech National Bank has lowered its forecast for the development of public finances in 2019 and 2020, in its Inflation Reports summary published on Friday. The bank now expects a surplus of 0.3 percent of GDP in 2019, as opposed to February’s more optimistic estimate of 1.2 percent. The new expectations for 2020 have gone down even more sharply from February’s 1.3 percent to the current forecast of 0.2 percent. This year, public debt is expected to sink from 32.7 percent of GDP to 30.9 percent. Next year, a further decrease to 29.3 percent forecast.

In a prognosis released on Thursday, the bank also lowered the country’s economic growth projection to 2.5 percent in 2019 and 2.8 percent in 2020. A further decrease in the Czech crown’s exchange rate is also expected.