OECD predicts 0.5 pct contraction of Czech economy in 2012

The OECD on Tuesday cut its growth forecast for the Czech economy from 1previously predicted 1.6 percent growth to 0.5 percent contraction in 2012 due to a decline in domestic consumption spurred by the government’s austerity measures. The Paris-based Organization for Economic Cooperation and Development recommended the government continue to consolidate public finances at a reasonable pace. The OECD predicts that in 2013, the Czech economy will grow by 1.7 percent due to stronger exports and investments. The Czech Finance Ministry expects a GDP growth of 0.2 percent this year while the central bank expects the economy to stagnate.

Author: Jan Richter