Czech finance ministry lowers growth forecast due to US tariffs

The Czech Ministry of Finance now expects the economy to grow by 2 percent this year, down from its previous forecast of 2.3 percent. The revision reflects the impact of US tariffs on cars, steel, and aluminum. However, inflation is expected to remain stable at 2.4 percent, while the budget deficit should stay at 2.2 percent of GDP. Public debt is projected to rise slightly to 44.5 percent of GDP. Finance Minister Zbyněk Stanjura warned that a full 20 percent US tariff on EU goods could reduce growth to 1.6 percent, and stressed that Europe seeks to avoid a trade war with the US.