Tuesday , June 6 2023

This year, the Czech economy will grow by three percent, forecasts in Brussels – News.cz


In the following year, the Commission reiterated Czech GDP growth by 2.9 percent, while the Czech economy estimated at 2.6 percent in 2020.

The main driver of GDP growth will be domestic demand. The risk is a lack of workforce and dependence on external factors. Inflation rates should gradually stabilize with a two-percent inflation target.

Consumer confidence in the wage bill, wages and pensions is boosted by rising wage levels in the public sector and increasing pensions by increasing public spending, said the EU's internal economy. Thanks to real wage growth, the negative outcome of exports is GDP growth compared to the corresponding period of the previous year. The Commission also estimates this year's slowdown in investment growth in the Czech Republic.

Ireland is growing fastest

This year's forecast for the EU is projected to increase by 2.2 percent. The Slovak and Polish economies are growing faster than the Czech Republic. This year, the fastest growing EU Member States are Ireland – almost eight percent.

Among the risks that threaten growth, the tensions in trade relations are related to US disputes with China and doubts about the financial stability of banks, which may be affected by the difficulties caused by some very high indebtedness in the Member States of the Union. It also mentions Italy's public finances, whose draft budget for the coming year is in breach of EU rules.

The European Commission has released a forecast for 27 EU countries. Given the braking average, it is no longer the United Kingdom, although estimates of GDP growth in the next few years are published in the report. This is expected to increase by 1.3 percent this year and a tenth of a percentage point in the next year.

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