The Czech Ministry of Finance expects an economic growth of 3,1 % during the 2021

Published: 15.04.2021 Related countries:  United Kingdom United Kingdom

For the next year the growth is expected to accelerate to 3,7 % thanks to the increase of private consumption. On the other hand, the deficit of public finance should reach 8,8 % of the GDP this year and 5,9 % in the next year.

In comparison to the last year this is good news, the Czech economy was in a decline of 5,6 % in 2020. There is also a slight increase of expected inflation to 2,5 % compared to the initial projection, which is mainly caused by the price increase of oil and food. The turning point towards stable economic growth should be an effective vaccination campaign. In the long term though, The Czech Fiscal Council suggests to prepare a detailed plan for consolidation of public finance which will also include the raise of taxes, but it should partially decelerate the growth of total public debt, which was 38,1 % of total GDP in the last year.