Finance minister: economy to contract by up to 2 pct in 2012-01-02

02-01-2012

The Czech economy will most likely contract by up to 2 percent in 2012, Finance Minister Miroslav Kalousek told Czech Radio on Monday. This would mean the state budget would lose between 30 and 50 billion crowns; however, the budget’s deficit would still remain at 105 billion crowns, or 3.2 percent of the country’s GDP. Mr Kalousek said regardless of the possible contraction, the government would pursue its fiscal strategy aimed at gradually lowering the deficit of the state budget. By 2014, the deficit should drop to 1.9 percent of the GDP.