Economic growth in 2020 will slow down to 2.0% from 2.5% expected for 2019. This is forecast by the Czech Banking Association (ČBA), adding that GDP should gain 2.3% in 2021. Economic performance in 2020 and 2021 should be aided by private consumption supported by a still stable, yet gradually slowing increase in wages. Currently the highest risks in terms of the Czech economy are the creation of a trade dispute between the United States and EU countries in connection with European subsidies for Airbus and the imposition of duties on European goods in the amount of USD 7.5bn. Within the framework of inflation development, analysts expect a gradual slowdown to 2.7% in 2020 and 2.0% in 2021.
Prepared by the team of foreign office CzechTrade Chicago