Czech Chamber of Commerce: Czechia has fallen into “middle income trap”

Czechia has exhausted all previous growth factors, lost its competitive advantages and has fallen into what economists call “ a middle-income trap”, in which countries catching up to the level of economically developed states sometimes find themselves, according to a report by the Czech Chamber of Commerce. The report, cited by the ctk news agency, says the consequences will be long-term economic stagnation, a slowdown in wage growth and a drop in living standards. The trend could be reversed by stronger support for production with higher added value.