The domestic economy experienced negative effects of the energy crisis and high inflation in 2023, which led to a decline in GDP. A new forecast by the economic team at consultancy and technology company Deloitte predicts GDP growth of 1.1% for this year. Foreign trade is expected to be the driving force, and the reduction in inflation should then support a recovery in household consumption growth. The Deloitte experts also expect a slight rise in unemployment and real wages, namely by 1.9%.

For 2024, the forecast expects a continued decline in inflation as well as a brisk reduction in interest rates, which may be around 3.50% at the end of this year.

Source: Deloitte

Prepared by CzechTrade London team.