MF: Inflation to remain high next year

Published: 11.11.2022 Related countries:  Japan Japan

The Czech economy will grow by 2.4% in 2022. This information was published by the Czech Ministry of Finance (MF) in its November macroeconomic forecast.

Next year's GDP could more or less stagnate with high average inflation of 9.5%. The Ministry worsened the outlook for the unemployment rate by 0.5 pp; it should reach 3.1% on average in 2023. The ongoing tension in the labour market will push for increased wages; however, it will stay behind inflation. Therefore, the average real wages should decrease this year and next year. The deficit in public finances reflects the consequences of the Russian aggression against Ukraine. This year, it will probably total 4.6% of GDP, while it should amount to 4.3% of GDP next year. The set fiscal policy should increase indebtedness to almost 44% of GDP in 2022 and approximately 46% of GDP in 2023.