{"id":7378,"date":"2019-04-17T00:00:00","date_gmt":"2019-04-16T22:00:00","guid":{"rendered":"https:\/\/www.rozpoctovarada.cz\/economy-to-grow-by-2-4-this-year-according-to-new-prediction-by-ministry-of-finance-downturn-risks-growing\/"},"modified":"2022-12-29T22:16:44","modified_gmt":"2022-12-29T21:16:44","slug":"economy-to-grow-by-2-4-this-year-according-to-new-prediction-by-ministry-of-finance-downturn-risks-growing","status":"publish","type":"post","link":"https:\/\/www.rozpoctovarada.cz\/en\/economy-to-grow-by-2-4-this-year-according-to-new-prediction-by-ministry-of-finance-downturn-risks-growing\/","title":{"rendered":"ECONOMY TO GROW BY 2.4% THIS YEAR ACCORDING TO NEW PREDICTION BY MINISTRY OF FINANCE. DOWNTURN RISKS GROWING."},"content":{"rendered":"

In its April macroeconomic predictions<\/a> , the Ministry of Finance anticipates that the domestic economy will grow year-on-year by 2.4%. This new prediction is one tenth of a percentage point lower than January\u2019s. At this time last year<\/a>, the ministry predicted 3.3% growth for 2019. The anticipated economic growth for next year, however, has not changed from the January prediction and remains at 2.4%.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Main Macroeconomic Indicators<\/caption>\n
<\/th>\n2014<\/th>\n2015<\/th>\n2016<\/th>\n2017<\/th>\n2018<\/th>\n2019<\/th>\n2020<\/th>\n2018<\/th>\n2019<\/th>\n2020<\/th>\n<\/tr>\n
Current forecast<\/i><\/th>\nPrevious forecast<\/i><\/th>\n<\/tr>\n<\/thead>\n
Gross domestic product<\/b><\/td>\nbill. CZK<\/i><\/td>\n4314<\/b><\/td>\n4596<\/b><\/td>\n4768<\/b><\/td>\n5047<\/b><\/td>\n5304<\/b><\/td>\n5595<\/b><\/td>\n5839<\/b><\/td>\n5313<\/td>\n5590<\/td>\n5823<\/td>\n<\/tr>\n
Gross domestic product<\/b><\/td>\ngrowth in %, const.pr.<\/i><\/td>\n2,7<\/b><\/td>\n5,3<\/b><\/td>\n2,5<\/b><\/td>\n4,4<\/b><\/td>\n2,9<\/b><\/td>\n2,4<\/b><\/td>\n2,4<\/b><\/td>\n2,8<\/td>\n2,5<\/td>\n2,4<\/td>\n<\/tr>\n
Consumption of households<\/b><\/td>\ngrowth in %, const.pr.<\/i><\/td>\n1,8<\/b><\/td>\n3,7<\/b><\/td>\n3,6<\/b><\/td>\n4,3<\/b><\/td>\n3,2<\/b><\/td>\n2,9<\/b><\/td>\n2,8<\/b><\/td>\n3,5<\/td>\n3,3<\/td>\n3,0<\/td>\n<\/tr>\n
Consumption of government<\/b><\/td>\ngrowth in %, const.pr.<\/i><\/td>\n1,1<\/b><\/td>\n1,9<\/b><\/td>\n2,7<\/b><\/td>\n1,3<\/b><\/td>\n3,7<\/b><\/td>\n2,2<\/b><\/td>\n1,9<\/b><\/td>\n3,8<\/td>\n2,1<\/td>\n1,9<\/td>\n<\/tr>\n
Gross fixed capital formation<\/b><\/td>\ngrowth in %, const.pr.<\/i><\/td>\n3,9<\/b><\/td>\n10,2<\/b><\/td>\n-3,1<\/b><\/td>\n3,7<\/b><\/td>\n10,5<\/b><\/td>\n3,1<\/b><\/td>\n2,7<\/b><\/td>\n8,8<\/td>\n3,1<\/td>\n2,7<\/td>\n<\/tr>\n
Net exports<\/b><\/td>\ncontr. to GDP growth, pp<\/i><\/td>\n-0,5<\/b><\/td>\n-0,2<\/b><\/td>\n1,4<\/b><\/td>\n1,1<\/b><\/td>\n-0,7<\/b><\/td>\n-0,3<\/b><\/td>\n0,0<\/b><\/td>\n-0,6<\/td>\n-0,3<\/td>\n-0,1<\/td>\n<\/tr>\n
Change in inventories<\/b><\/td>\ncontr. to GDP growth, pp<\/i><\/td>\n1,1<\/b><\/td>\n0,8<\/b><\/td>\n-0,4<\/b><\/td>\n0,1<\/b><\/td>\n-1,2<\/b><\/td>\n0,0<\/b><\/td>\n0,0<\/b><\/td>\n-1,1<\/td>\n0,0<\/td>\n0,0<\/td>\n<\/tr>\n
GDP deflator<\/b><\/td>\ngrowth in %<\/i><\/td>\n2,5<\/b><\/td>\n1,2<\/b><\/td>\n1,3<\/b><\/td>\n1,4<\/b><\/td>\n2,1<\/b><\/td>\n3,0<\/b><\/td>\n1,9<\/b><\/td>\n2,4<\/td>\n2,6<\/td>\n1,7<\/td>\n<\/tr>\n
Average inflation rate<\/b><\/td>\n%<\/i><\/td>\n0,4<\/b><\/td>\n0,3<\/b><\/td>\n0,7<\/b><\/td>\n2,5<\/b><\/td>\n2,1<\/b><\/td>\n2,3<\/b><\/td>\n1,6<\/b><\/td>\n2,1<\/td>\n2,1<\/td>\n1,6<\/td>\n<\/tr>\n
Employment (LFS)<\/b><\/td>\ngrowth in %<\/i><\/td>\n0,8<\/b><\/td>\n1,4<\/b><\/td>\n1,9<\/b><\/td>\n1,6<\/b><\/td>\n1,4<\/b><\/td>\n0,4<\/b><\/td>\n0,2<\/b><\/td>\n1,3<\/td>\n0,3<\/td>\n0,2<\/td>\n<\/tr>\n
Unemployment rate (LFS)<\/b><\/td>\naverage in %<\/i><\/td>\n6,1<\/b><\/td>\n5,1<\/b><\/td>\n4,0<\/b><\/td>\n2,9<\/b><\/td>\n2,2<\/b><\/td>\n2,2<\/b><\/td>\n2,2<\/b><\/td>\n2,3<\/td>\n2,2<\/td>\n2,2<\/td>\n<\/tr>\n
Wage bill (domestic concept)<\/b><\/td>\ngrowth in %, curr.pr.<\/i><\/td>\n3,6<\/b><\/td>\n4,8<\/b><\/td>\n5,7<\/b><\/td>\n8,3<\/b><\/td>\n9,3<\/b><\/td>\n7,5<\/b><\/td>\n5,9<\/b><\/td>\n9,6<\/td>\n7,7<\/td>\n6,3<\/td>\n<\/tr>\n
Current account balance<\/b><\/td>\n% of GDP<\/i><\/td>\n0,2<\/b><\/td>\n0,2<\/b><\/td>\n1,6<\/b><\/td>\n1,7<\/b><\/td>\n0,3<\/b><\/td>\n0,2<\/b><\/td>\n0,3<\/b><\/td>\n0,3<\/td>\n0,3<\/td>\n0,2<\/td>\n<\/tr>\n
General government balance<\/b><\/td>\n% of GDP<\/i><\/td>\n-2,1<\/b><\/td>\n-0,6<\/b><\/td>\n0,7<\/b><\/td>\n1,6<\/b><\/td>\n0,9<\/b><\/td>\n0,3<\/b><\/td>\n.<\/b><\/td>\n1,6<\/td>\n1,0<\/td>\n.<\/td>\n<\/tr>\n
Assumptions:<\/em><\/td>\n\u00a0<\/i><\/td>\n\u00a0<\/b><\/td>\n\u00a0<\/b><\/td>\n\u00a0<\/b><\/td>\n\u00a0<\/b><\/td>\n\u00a0<\/b><\/td>\n\u00a0<\/b><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Exchange rate CZK\/EUR<\/b><\/td>\n\u00a0<\/i><\/td>\n27,5<\/b><\/td>\n27,3<\/b><\/td>\n27,0<\/b><\/td>\n26,3<\/b><\/td>\n25,6<\/b><\/td>\n25,5<\/b><\/td>\n25,1<\/b><\/td>\n25,6<\/td>\n25,5<\/td>\n25,1<\/td>\n<\/tr>\n
Long-term interest rates<\/b><\/td>\n% p.a.<\/i><\/td>\n1,4<\/b><\/td>\n0,6<\/b><\/td>\n0,4<\/b><\/td>\n1,0<\/b><\/td>\n2,0<\/b><\/td>\n2,2<\/b><\/td>\n2,4<\/b><\/td>\n2,0<\/td>\n2,7<\/td>\n3,0<\/td>\n<\/tr>\n
Crude oil Brent<\/b><\/td>\nUSD\/barrel<\/i><\/td>\n99<\/b><\/td>\n52<\/b><\/td>\n44<\/b><\/td>\n54<\/b><\/td>\n71<\/b><\/td>\n66<\/b><\/td>\n65<\/b><\/td>\n71<\/td>\n56<\/td>\n57<\/td>\n<\/tr>\n
GDP in Eurozone<\/b><\/td>\ngrowth in %, const.pr.<\/i><\/td>\n1,4<\/b><\/td>\n2,1<\/b><\/td>\n2,0<\/b><\/td>\n2,4<\/b><\/td>\n1,8<\/b><\/td>\n1,0<\/b><\/td>\n1,4<\/b><\/td>\n1,9<\/td>\n1,4<\/td>\n1,5<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Source: Ministry of Finance of the Czech Republic<\/a><\/p>\n

The most important factor in growth of the Czech economy should remain in household consumption, which will be driven by exceptionally low unemployment, continuing strong wage growth and higher pensions. \u201cAlthough fixed-capital investment and government spending should positively contribute to growth, it will be lower than in 2018, while foreign trade should remain negative,\u201d the prediction stated.<\/p>\n

In its new prediction, the Ministry of Finance foresees continuing global economic expansion, though it will gradually weaken. Downturn risks are also significantly elevated, meaning that the real results may be rather worse than the current estimates. One of these risks is the uncertainty surrounding the United Kingdom\u2019s withdrawal process from the European Union.<\/p>\n

The April prediction also included a reduction from the January version in the estimate of economic growth in eurozone countries this year from 1.4% to 1%. The Czech Republic\u2019s main economic partner\u2014Germany\u2014will only post growth of 0.8%. \u201cThe slowing of economic growth in Germany is also a risk for the Czech economy. Industrial production has been falling since November 2018, and the trend in business sentiment indicators suggests the situation may worsen in the short term,\u201d the prediction said.<\/p>\n

The average inflation rate should reach 2.3% this year, meaning it will be slightly above the Czech National Bank\u2019s target of 2%. Inflation is forecasted to slow to 1.6% next year.<\/p>\n","protected":false},"excerpt":{"rendered":"

In its April macroeconomic predictions , the Ministry of Finance anticipates that the domestic economy will grow year-on-year by 2.4%. This new prediction is one tenth of a percentage point lower than January\u2019s. At this time last year, the ministry predicted 3.3% growth for 2019. The anticipated economic growth for next year, however, has not…<\/p>\n","protected":false},"author":3,"featured_media":7097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-7378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nECONOMY TO GROW BY 2.4% THIS YEAR ACCORDING TO NEW PREDICTION BY MINISTRY OF FINANCE. DOWNTURN RISKS GROWING. | N\u00e1rodn\u00ed rozpo\u010dtov\u00e1 rada<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rozpoctovarada.cz\/en\/economy-to-grow-by-2-4-this-year-according-to-new-prediction-by-ministry-of-finance-downturn-risks-growing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ECONOMY TO GROW BY 2.4% THIS YEAR ACCORDING TO NEW PREDICTION BY MINISTRY OF FINANCE. DOWNTURN RISKS GROWING. | N\u00e1rodn\u00ed rozpo\u010dtov\u00e1 rada\" \/>\n<meta property=\"og:description\" content=\"In its April macroeconomic predictions , the Ministry of Finance anticipates that the domestic economy will grow year-on-year by 2.4%. This new prediction is one tenth of a percentage point lower than January\u2019s. 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