EC forecasts Czech GDP growth to slow to 2.6 pct this year

The Czech economy is expected to grow by 2.6 percent this year, following a 3 percent expansion in 2018, according to the latest forecast from Brussels.

For the coming year, the European Commission foresees growth of 2.5 percent, again mainly fuelled by solid growth in household consumption, with investment growth expected to ‘normalise’.

Private consumption is likely to remain the main growth driver and should continue to benefit from swift growth in wages and pension incomes, and robust consumer confidence, the EC said.

The trade balance is set to deteriorate over the forecast horizon and detract from GDP growth in 2019, before turning neutral in 2020, the forecast says.

Author: Brian Kenety