wiiw Forecast Reports

CZECH REPUBLIC: Stability and (undue) caution


Leon Podkaminer

in: Moving Into the Slow Lane
wiiw Forecast Report No. Spring 2019, March 2019 , pp. 80-83

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The strong rise in public investment in 2018 is to moderate in 2019 thus reducing overall growth accordingly. Tight labour markets and the ongoing 
wage push support private consumption. Despite this, higher inflation is not on the horizon while rising unit labour costs are responsible for falling 
corporate profitability and may weaken foreign trade performance. Monetary policy may become too restrictive. Fiscal policy targeting surpluses does little to support growth.


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

Countries covered: Czechia