RB: Economy to grow 2.5%; inflation to slow down to 2.3%RB: Economy to grow 2.5%; inflation to slow down to 2.3%

Published: 26.01.2021 Related countries:  Japan Japan

GDP growth in 2021 will be 2.5% after dropping 6.6% in 2020.

The passed tax package that will abolish the super-gross wage along with vaccination of the population will help the increase. This is expected by Raiffeisenbank (RB), adding that inflation will slow down from 3.2% to 2.3%. According to RB, the pandemic has not made a too much of an impact on unemployment, but it expects its rate to increase from 3.6% to 5.1% in 2021. Within the framework of monetary policy, the Czech National Bank will not want to be hasty as predicted and will not opt for higher rates. The basis 2W repo rate will remain at 0.25% in 2021 and will increase on average to 0.65% in 2022.