The Czech economy returned to growth in 2014, following two years of contraction, and it is expected to grow somewhat further in 2015 and 2016. Unemployment is falling back towards its long-term average. The return to growth has been largely driven by domestic demand, with investment growing particularly strongly and household consumption picking up. Export and import growth are expected to have been robust in 2014 and the trade surplus to have grown strongly. Inflation has remained low. The general government deficit has improved significantly in recent years. It is projected to increase slightly in 2015 due to stronger investment activity and higher expenditure, while the debt-to-GDP ratio remains well below the EU limit.
The Commission has made seven country-specific recommendations to the Czech Republic to help it improve its economic performance, which have been approved by all EU member states. These are in the areas of: public finances; taxation; pensions and health care; labour market; education, training and research; services; public administration.