Czech Republic budget seen in surplus through to 2021

The Czech Republic’s public finances should stay in the black through to 2021, albeit at a reduced level compared with 2017, according to a report to be put to the government on Monday. The updated convergence report sees the overall budget surplus sliding to 1.5 percent of Gross Domestic Product in 2018 from 1.6 percent last year. The surplus should continue until 2021 when it will have narrowed to 0.9 percent of GDP.

The EU target is for member countries annual deficits not to exceed 3.0 percent of GDP. The overall Czech debt to GDP ratio is set to slide over the period from an expected 32.9 percent this year to 29.9 percent in 2021.