OECD revises upward Czech economic growth estimate

After contracting sharply in 2020, Czech GDP is projected to recover by 3.3 percent this year and 4.9 percent in 2022, the Paris-based Organisation for Economic Co-operation and Development (OECD) said in its latest economic snapshot.

The country has had a high Covid-19 infection and death rate and progress in vaccinations has been relatively slow, but recovery should gather pace in the second half of 2021, the OECD said, once the population is more extensively vaccinated.

A rebound in services and boosting of private consumption and investment should be accompanied by higher inflation due to rising food and fuel prices. Unemployment, already low, will start to decline, the OECD said