IMF cuts Czech economy forecast

The International Monetary Fund on Friday cut its forecast for the performance of the Czech economy in 2013 to an 0.4 percent contraction, from a previous estimate of 0.3 percent growth. The IMF said despite its healthy fundaments, the Czech economy was in the middle of a long recession caused by the Eurozone crisis and weakened domestic demand. The worsened outlook corresponds to the latest estimate by the Czech central bank which predicts a 1.5 percent contraction this year. For 2014, the IMF forecasts a growth of 1.5 percent.