IMF downgrades economic growth forecast for Czech Republic

The International Monetary Fund has downgraded its economic growth forecast for the Czech Republic. Its November forecast predicts a growth of 2.6 percent this year and 3.5 percent next year, down from October‘s 3.8 percent and 4.5 percent forecast. According to the IMF, inflation will continue to rise next year due to developments in the labor and real estate markets, rising energy prices and supply chain disruptions. The IMF says it supports the Czech National Bank’s current position on monetary policy, but warns that the central bank should carefully consider the potential risks when considering further rate increases. According to the IMF, a fast rise in rates could jeopardize economic recovery.