Czech economy outpaces EU average but state debt rises sharply

The Czech economy grew faster than the EU average last year, but state debt also increased significantly, according to the Supreme Audit Office. GDP rose by 2.6 percent, compared with an EU average of 1.5 percent. State debt reached 3.7 trillion crowns, while debt-servicing costs climbed to 98 billion crowns. The office warned that low labour productivity, high energy intensity and an ageing population threaten the country’s future competitiveness. It also criticised persistent budget deficits and said government spending on transport, research and innovation was not delivering adequate results. The state budget ended last year with a 290.7-billion-crown deficit.