OECD expects Czech economic growth to accelerate this year, inflation to continue to decline

Czech economic growth will accelerate to 2.4% this year, while next year, gross domestic product will grow by 2.5%, as stated in a report by the Organisation for Economic Co-operation and Development (OECD), which was presented on Tuesday by Prime Minister Petr Fiala and OECD Secretary-General Mathias Cormann at a press conference in Prague.

The report also expects a further weakening of inflation, which should average 2.3% this year and reach the Czech National Bank's 2% target next year. Mr. Cormann stressed that Czechia must continue with budgetary consolidation in order to gain space to finance the expected expenditures related to the aging population. Mr. Fiala agreed with the OECD’s recommendations. Czechia has been an OECD member since 1995, with the organisation focusing on economic growth, employment, trade, and development cooperation among its thirty-eight member countries.