Finance Minister predicts that Czech economy will shrink by 0.5 percent in 2010

The Czech economy is set to shrink by 0.5 percent in 2010, Finance Minister Eduard Janota said on Tuesday. Last week, Mr Janota predicted a 0.3 percent contraction in the Czech economy next year. At a news conference on Tuesday, Mr Janota said that he had revised his estimates as the government’s draft budget for 2010 had been altered slightly over the past week. The budget deficit was now predicted to be slightly larger than expected, amounting to some 5.5 percent of GDP. In the last week, the Czech National Bank has predicted a growth rate of 0.7 percent in 2010, while trade unions have said they expect the economy to shrink by up to two percent.

Author: Rosie Johnston