Česká verze stránek
Israel
Czech Economy Set for Moderate Growth and Stable Labor Market in 2025, Finance Ministry Says
The Czech Ministry of Finance's latest macroeconomic forecast anticipates a 2.3% GDP increase in 2025, supported by stronger household consumption and investments. Inflation is projected to decline slightly to 2.3%, while the unemployment rate is expected to remain low amid persistent labor shortages. Public finances are improving, with the government deficit and debt both under control. The forecast points to a steady recovery and balanced economic development for the Czech Republic.
The Czech Ministry of Finance’s January 2025 Macroeconomic Forecast signals ongoing economic recovery. GDP is expected to rise by 2.3% in 2025, mainly supported by household consumption and investment activity.
Inflation slowed significantly to 2.4% in 2024 due to easing external inflationary pressures and restrained domestic demand, influenced by tight monetary policy and fiscal consolidation. For 2025, inflation is projected to edge slightly lower to 2.3%.
Despite moderate economic growth, labor shortages continue to weigh on the labor market, keeping the unemployment rate at 2.6% in 2024 with a slight decline to 2.5% expected in 2025. Wage growth remains strong, leading to higher real earnings.
The current account surplus stood at 1.0% of GDP for 2024, driven by improved goods trade, though a small deficit of 0.2% is forecast for 2025 as domestic demand picks up.
Public finances show improvement, with the government deficit falling to 2.8% of GDP in 2024, despite rising defense and pension costs. Further fiscal consolidation is set to bring the deficit down to 2.3% in 2025. Government debt is expected to surpass 44% of GDP next year. The outlook suggests moderate growth, easing inflation, and a resilient labor market for the Czech economy.
Prepared by team CzechTrade Israel
Source: Ministry of Finance of the CR