Czech Republic Economic Snapshot
Economic Forecast Summary (December 2021)
After contracting sharply in 2020, GDP is projected to grow by 2.5% and 3% in 2021 and 2022, respectively, and 3.9% in 2023. The removal of most containment measures amid steady progress with vaccinations will support a rebound in services and boost household consumption. Meanwhile, exports and manufacturing activity will face headwinds until mid-2022 due to supply bottlenecks. Unemployment will continue to fall and the labour market will tighten. Currently high inflation is expected to rise further in early 2022, but then subside toward the 2% target level by late 2023.
Reform Priorities (April 2021)
Going for Growth 2021 - Czech Republic
The recovery offers an opportunity to focus on productivity-enhancing investment and upskilling, including better targeting of R&D support and improved business environment.
©Shutterstock/Anton Petrus
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2021 Structural Reform Priorities
- Labour market: Make the labour market more fluid and inclusive
- R&D and digitalisation: Enhance R&D investment and improve business environment
- Environmental policy: Pursue greener growth
- Labour market: Reform the pension system and promote longer working lives
- Public sector efficiency: Improve public sector efficiency by consolidating local government services