Czech Republic

Czech Republic - Economic forecast summary (May 2018)


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Economic growth will remain robust in 2018 and 2019. Increasing wages and employment will keep household consumption growth high. Private investment growth is also projected to increase thanks to favourable credit conditions. External demand will remain high, driven by growth in trading partners.

Inflation will stay slightly above the target of the central bank, driven by accelerating wages. Following the interest rate increase in February 2018, monetary policy should raise interest rates only gradually as inflation remains close to its target and avoid creating a gap vis-à-vis the euro area rate. Fiscal space is ample to boost infrastructure investment and address spending needs in education, R&D, vocational training and ageing related spending to prepare for the future.


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Other information

Economic Survey of Czech Republic (survey page)


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