IMF sees Czech economy flat in 2012, to grow by 2% in 2013.

By bne IntelliNews February 28, 2012
The International Monetary Fund expects economic activity in the Czech Republic to be flat this year as the eurodebt crisis dents foreign demand, the main growth driver in the last two years, and domestic consumption remains weak, the fund said in a report released after concluding a regular country visit. In 2013 the economy is to expand by 2% with the improving of global conditions. Inflation is to stay at above 3% this year due to the VAT hike and fall back within the central banks target of 2% next year. The IMF expects the current account deficit to remain well-contained. The eurodebt crisis is a key downside risk to the forecast, the IMF said adding that a deepening of the crisis would affect the economy through the trade channel and also via banking and financial markets channels given the close financial integration of the Czech Republic with the countries in the eurozone. Yet, the fund acknowledges that the country has strong fundamentals, including manageable level of public debt, a comfortable external position and a resilient financial system, that will limit the vulnerability against these risks. The IMFs key recommendations are aimed at upgrading the fiscal framework by adopting a rule that ensures debt sustainability, continue focusing on fiscal consolidation, closely monitoring the relationship between local banks and their foreign parents and preserving the structural reforms to support economic growth.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Czech CSSD proposes 2014 general and European elections to be held together.

Social Democrats (CDDS), the major Czech opposition party, proposed next year's general and European elections to be held on the same day, CTK news agency reported. CSSD leader Bohuslav Sobotka ... more

Tesco Czech faces fine for selling products containing undeclared horsemeat

The Czech unit of UK retailer Tesco faces a fine of up to CZK 3mn (EUR 116,000) for selling beef lasagne containing undeclared horsemeat, Radio Prague reported. The state-run Agricultural and Food ... more

Czech Senate votes to limit immunity of lawmakers, judges.

The upper house of the Czech parliament, the Senate, voted on March 20 a constitutional amendment to limit the immunity of lawmakers and constitutional judges, Radio Prague reported. Out of the ... more

Follow Us On

Most Read

  1. Saudi Arabia to scale back plans for Neom city
    6 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. Iran vs Israel: Who is better equipped for war?
    2 days ago
  4. The ruble overtakes the yuan as Russia's main currency for settling international trade deals
    7 days ago
  5. Leading emerging markets move rapidly up World Bank’s PPP GDP and FDI confidence rankings
    7 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    17 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    21 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    26 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    19 days ago

Reports

Dismiss