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

THE CZECH REPUBLIC
Recession is likely to come to an end in 2014, mostly on account of the discontinuation of negative developments such as fiscal consolidation (whose chief aims have already been realised) and contraction of inventories (which have been reduced in 2012-2013). Competitive devaluation will help preserve positive impulses from external trade. A very weak recovery in 2014 is likely to follow primarily from a slight strengthening of private and public consumption. But fixed capital formation is not likely to rebound strongly before 2015. Only in 2015-2016 growth can become adequate.