Czech Banking Association slightly improves 2012 GDP outlook.

By bne IntelliNews April 16, 2012
The Czech Banking Association (CBA) expects the economy to post a zero growth this year due to subdued domestic demand and a 0.4% economic contraction in the eurozone, the countrys main export market, CBA said in an updated forecast comprising analysis from seven of the country's largest banks. The associations latest forecast represent an improvement from January 2012, when the CBA was expecting the Czech economy to contract by 0.1% this year. In 2013 the Czech economy should rebound posting a growth of 2%, the CBA said. Even in the worsening economic climate, the banking sectors lending will continue to show a mild expansion. Lending to businesses is seen rising by 3.3% y/y and to households by 3.8% y/y in 2012.
CBA forecasts
2012 2013
Real GDP growth 0.0 2.0
Unemployment rate (%) 8.9 8.6
Inflation rate (%) 3.4 2.2
Government deficit (% of GDP) -3.7 -3.0
Government debt (% of GDP) 43.7 45.2
Growth in private consumption (%) -0.8 1.0
Growth in government consumption (%) -1.0 0.0
Investment growth (%) 0.6 2.0
Growth in bank lending to private sector (%) 3.6 3.0
Growth in bank lending to households (%) 3.8 4.5
Growth in bank lending to businesses (%) 3.3 4.5
Growth in bank deposits of private sector (%) 4.1 3.5
Source: CBA
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