Czech economy will grow by 3.4 percent this year, according to Czech Banking Association forecast

The Czech economy will grow by 3.4 percent in 2021, according to a new forecast produced by the Czech Banking Association. In the following year, growth should reach 4.5 percent, the prognosis states.

The projected numbers are more optimistic than in the association’s previous forecast that was released in May, which expected growth in 2021 to reach 3.3 percent of GDP and 4.3 percent in 2022.

Economists from the Czech Banking Association expect that the rise in household demand and substantial government investments will be the main drivers of growth. Last year the Czech economy contracted by 5.8 percent, mainly as a result of the coronavirus pandemic.