Czech National Bank on Czech economy

Published: 20.11.2019 Related countries:  Czech Republic Czech Republic

Czech Natinal Bank issued the Inflation Report - IV/2019 in which described the current economic situation and predicted the future development of Czech economy.

GDP dynamics will fall below 2.5 %, inflation will slow down. In the coming period inflation will remain in the upper half of the tolerance band. In 2019 and 2020 it will reach 2.8 % and 2.7 %, respectively. At the monetary policy horizon it will come close to the Czech National Bank’s (ČNB) 2% target and for all of 2021 it should reach 1.9 %. This was reported in the Inflation Report – IV/2019 by ČNB, according to which the price increase is primarily driven by core inflation, regulated prices and the food sector. Economic growth should for full years 2019 and 2020 slow further to 2.6 % and 2.4 %, in reaction to weaker international demand. In 2021 it will once again grow to 2.8 %. GDP dynamics will be supported primarily by consumption expenditures.

Source: ČIA

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