The economy of the Czech Republic continues to grow at a steady pace, while inflation has returned to target after three subdued years. The labour market is strong, but employment growth is likely to slow markedly after 2017. The abandonment of the exchange rate policy by the central bank raises risks but is unlikely to have a material short-term impact on the economy. The headline surplus in 2016 reached 0.6% of GDP but the surplus is expected to decline in 2017 and 2018.

Indicators 2015 2016 2017 2018
GDP growth (%, yoy) 4,5 2,4 2,6 2,7
Inflation (%, yoy) 0,3 0,6 2,5 2,0
Unemployment (%) 5,1 4,0 3,5 3,5
Public budget balance (% of GDP) -0,6 0,6 0,3 0,1
Gross public debt (% of GDP) 40,3 37,2 36,2 35,6
Current account balance (% of GDP) -1,2 0,3 0,0 -0,2

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