wiiw Forecast Reports

CZECH REPUBLIC: Balanced but moderating growth

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Leon Podkaminer

in: Strong Growth Amid Increased Negative Risks
wiiw Forecast Report No. Autumn 2018, November 2018 , pp. 80-83

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The Czech economy may face a period of slowing growth. Tight labour markets and the wage push which have supported growth recently may produce second-round effects such as rising unit labour costs, falling corporate profitability and weakened foreign trade performance. These effects may actually depress growth especially if monetary policy becomes too restrictive, foreign demand for Czech goods proves insufficient and productivity advances are less impressive than generally assumed.

 

Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Czech Republic


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