wiiw Forecast Reports

CZECHIA: Turnaround subdued by central bank activity


Leon Podkaminer

in: Recovery Beating Expectations
wiiw Forecast Report No. Autumn 2021, October 2021 , pp. 50-53

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Pandemic concerns have been fading. GDP has started to recover, and a rising wage bill is supporting a strong rise in consumption. Growth in gross fixed capital formation is still inadequate, but industrial production is performing very well. An upturn in inflation has led to a tightening of monetary policy. The interest rate hike may have negative consequences for growth, but fiscal policy will continue to be supportive. The prospects, though fairly good, remain unimpressive.


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

Countries covered: Czechia