The European Commission has predicted a slowdown in the Czech economy. The Commission’s winter forecast sees GDP growth falling to 2.1 percent this year, compared to 2.6 percent last year. Next year it is expected to accelerate to 2.2 percent. According to the European Commission, last year’s growth was driven mainly by domestic demand, with household consumption fuelled by growing salaries. Industrial production significantly dropped in the second half of 2019, which had a negative effect on company investments.
The Czech economy grew at a healthy pace, the country’s unemployment rate is at the lowest in decades, wage growth remained solid and inflation stayed under control. By most measures, 2019 was a good year for the country, former central bank governor Miroslav Singer says. But he cautions that while the Czech Republic has caught with some Western European countries in purchasing power, it has neglected investment in infrastructure for the long haul.
Czech economic growth in the 3rd quarter has slowed to 2.5 percent
year-on-year, according to data released by the Czech Statistics Office.
Compared to the 2nd quarter GDP rose by 0.4 percent.
Analysts say this confirms the predicted slow-down in economic growth, although compared to the situation in Germany, the Czech Republic’s main export destination, the Czech figures are still viewed as positive.
Economic growth in 2018 reached 2.9 percent and the prediction for this year is 2.5 percent.