European Commission: Long term outlook for Czech public finances getting worse
The long term outlook for the Czech Republic’s public finances is worsening due to the country’s population ageing, the European Commission warns in its latest socio-economic analysis of the country released on Wednesday. The study says there have been insufficient steps towards ensuring long-term budget sustainability in the Czech health and pension systems.
On the other hand, the European Commission analysis says that the country’s labour market remains strong, with wage growth supporting consumer expenditure being the main engine of economic growth. However, an insufficient amount of labour and higher salary expenses could slow down growth.