European Commission forecast raises Czech economic growth prediction

The European Commission’s summer macroeconomic forecast has raised its prediction for Czech economic growth this year from 1.9 percent to 2.3 percent, with the average rate of inflation expected to lie at 13.9 percent – the fourth highest in the EU after the Baltic states. The reason behind the improved estimate is the surprising level of productivity of Czech industry during the first quarter of 2022, which was less impacted by a lack of commodities than was expected.

Meanwhile, for next year, the forecast has lowered its expectations when it comes to the growth of the Czech economy. The country is now expected to grow by 1.5 percent instead of 2.3 percent in 2023. Inflation is expected to fall to 5.8 percent.