EBRD upgrades Czechia's economic forecast

The European Bank for Reconstruction and Development (EBRD)'s latest economic forecast is slightly sunnier for Czechia than its last one was - it now predicts that GDP in the country will grow by 0.1 percent this year, while in May it predicted that it would fall by 0.1 percent. However, the EBRD lowered the Czech economy's growth estimate for next year to 2.5 percent from the previously predicted 2.9 percent.

The EBRD stated in its report that the Czech economy continues to suffer from the negative effects of high inflation, with GDP declining by 0.6 per cent in annual terms in the first half of the year and private consumption declining for the fifth quarter in a row year on year. However, it went on to say that investments rebounded in the second quarter and that the positive quarterly growth of household consumption in the second quarter suggests that abating inflation bodes well for a gradual recovery.