Ministry issues gloomier outlook for Czech economy

In a revised estimate, the ministry of finance says the Czech economy is likely to contract by 4.3 percent this year, which would be the steepest decline in GDP in the history of the Czech Republic. Three months ago the ministry predicted a considerably milder contraction of 2.3 percent in 2009. The minister of finance, Eduard Janota, told the newspaper Mladá fronta Dnes that the government would have to reevaluate next year’s budget in the light of the new estimate.

The finance ministry also said the economy should grow next year by 0.3 percent, which again is a gloomier outlook than April’s prediction of 0.8 percent growth in 2010.

Author: Ian Willoughby