EC raises estimate for Czech GDP growth

The European Commission has raised its estimate for the Czech Republic's GDP growth for 2007. The EC made the announcement on Friday, raising an earlier estimate of 4.9 percent to 5.8. At the same time, the commission warned that Czech GDP growth will slow in the next two years. The new rate by the commission is closer to the Czech Finance Ministry's own, lower by just one percentage point. The commission said that this year's growth has been driven by strong consumer demand, rising thanks to increasing wages, falling unemployment, and low inflation. Industrial production, particularly the production of cars, electronics, and transport equipment are dominant factors in the rise.

In other numbers on Friday, the EC revised its estimate for inflation for 2007, raising its forecast from 2.4 to 3 percent.