wiiw Current Analyses and Forecasts
The Czech Republic: Fiscal consolidation amid elevated political tensions
in: Recovery: Limp and Battered
wiiw Current Analyses and Forecasts No. 8, July 2011 , pp. 55-58
In the Czech Republic, economic growth in the current year will slow down. Fiscal consolidation measures – if consistently implemented – will restrict household consumption. However, it is hoped that fixed investment will register a modest take-off. Foreign trade, depending predominantly on exports to Germany, has assumed the lead – and positive – role. Monetary policy is expected to remain relaxed, thus helping to check currency appreciation. The political situation will remain highly volatile.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Visegrad countries, Czech Republic