In 2019, the growth dynamics of the Czech Republic's real GDP will slow down to 2.5% from 2.8% expected in 2018. In 2020, the local economy will increase 2.4%, according to the macroeconomic prediction of the Ministry of Finance (MF). Positive factors will include household consumption reflecting a strong wage rise amid low unemployment. Investments in fixed assets will have a positive impact, as well. Inflation is expected to remain within the tolerance limits of the central bank's target at around 2%. The ministry estimates that the unemployment rate dropped to 2.3% in 2018 and the space for any subsequent decreases is almost exhausted. The ministry predicts unemployment at 2.2% in 2019 and 2020.
Prepared by the team of foreign office CzechTrade Chicago