WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The Czech economy grew in line with expectations in 2021, driven by household consumption as pandemic concerns faded into the background and savings started to be spent. Despite persistent supply-side troubles and sharply rising prices in the first two months of 2022, the pre-war outlook for growth over the forecast period was relatively favourable. The supply-chain pressures limiting exports showed signs of easing, and – boosted by the inflow of EU funds – investment activity was expected to accelerate. The war in Ukraine now limits these prospects. Great uncertainty, disruption and surging prices will dampen most channels of growth this year. We expect real GDP to grow modestly, by 2.6% in 2022, gradually picking up in 2023 and 2024.