Czech Finance Ministry downgrades its growth forecast for 2023

The Ministry of Finance has downgraded its growth forecast for the coming year, predicting that GDP will fall by 0.5 percent in 2023. The average annual inflation is expected to be 10.4 percent, according to the ministry's latest macroeconomic forecast released on Thursday. The outlook in both areas has worsened compared to the November forecast, when the ministry predicted an 0.2 per cent drop in GDP and 9.5 per cent annual inflation. The ministry revised the figures in light of the decline in household consumption in the second half of last year. However, Finance Minister Zbyněk Stanjura said he expects the recession to be short-lived, with the first signs of economic recovery expected in the second quarter of this year.