FinMin expects economic growth of 3.6%, inflation at 2.1%

11. 4. 2018

The Finance Ministry of the Czech Republic increased its economic growth prediction for 2018 to 3.6% and for 2019 to 3.3%.

(ČIA) The Finance Ministry of the Czech Republic increased its economic growth prediction for 2018 to 3.6% and for 2019 to 3.3%. It had previously expected growth of 3.4% and 2.6%, respectively. Economic performance should be driven exclusively by domestic demand led by spending on final household consumption and investment activities of companies and government institutions. Anti-inflationary effects resulting from the anticipated introduction of stricter monetary policies should result in a slowdown of the average inflation rate to 2.1% (2018) and 1.9% (2019). According to the ministry, the labor market is showing signs of overheating. A lack of workers is apparent in all sectors of the economy, which limits the space for a further drop in unemployment (2018: 2.4 %, 2019: 2.3 %).