Czech FinMin keeps budget gap target at 2.8% of GDP in 2013.

By bne IntelliNews June 3, 2013

The Czech finance ministry reiterated its target of narrowing the budget gap to 2.8% of economic output in 2013 from 4.4% in 2012 and said it expects the deficit to stay below the EU’s 3% threshold in the long term helping the country exit the EU’s excessive deficit procedure next year, the ministry said in its latest Fiscal Outlook published on May 31.

In 2014 the budget deficit is seen widening to 2.9% of GDP before again shrinking to 2.8% in each of the next two years. “With this trajectory of deficit and with respect to the expected closing of the negative output gap, the current restrictive fiscal policy should be transformed into a more expansive one, especially towards the end of the Fiscal Outlook horizon”, the ministry said.

After contracting for six consecutive quarters, the Czech economy should start recovering from the second quarter of this year. Yet, at the best case scenario it should stagnate in full-2013 driven by net exports and to a lesser extent by gross capital formation that are to offset an expected decline in household consumption. The positive contribution of foreign trade and gross domestic expenditure should help the Czech economy expand by 1.2% in 2014 and further by 2.1% in 2015 and by 2.6% in 2016, the ministry said.

The general government debt is forecast to reach 48.5% of GDP in 2013 from 45.8% in 2012. It is expected to further increase to 51.9% in 2016 but will stay below the EU’s cap of 60%.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

Czech PM accepts new nominee for finance minister

Reducing the political tension in the country a little, Czech Prime Minister Bohuslav Sobotka accepted on May 17 the nomination of a new finance minister from coalition partner Ano. Meanwhile, ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss