In 2018, the government debt of the Czech Republic declined to 30,5 % of GDP (from 32,3 % of the country’s GDP in 2017). Moreover, the Czech Republic maintains the set trend of stabilisation, or in this case reduction, of its public debt for the fifth consecutive year, thus ranking among the most fiscal responsible EU member states. In terms of the indebtedness of government institutions, the Czech Republic boasts the fourth smallest indebtedness in relative terms within the EU, outperformed only by Estonia, Luxembourg and Bulgaria. This decline in indebtedness is enabled by more effective management of budgetary liquidity as well as utilisation of this disponible liquidity for needs of state financing, stable economic growth, but also responsible budgetary policy demonstrated by the attained budgetary surplus of 2.9 billion CZK last year.
CzechTrade Team Calgary
Source: Ministry of Finance of the Czech Republic