Czech Finance Chief Says ‘Crisis Is Over’ as Outlook Improves
(Bloomberg) -- The Czech government said the economy was on track to recover from two years of post-pandemic stagnation as the growth outlook improved thanks to stronger corporate investments and household spending.
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The new forecast implies that economic output will finally return to pre-Covid 19 levels in 2024 after lagging most of the European Union over the past years, according to Finance Minister Zbynek Stanjura.
“We can say that this crisis is over,” Stanjura said in Prague.
Gross domestic product will probably expand 1.4% this year and 2.6% in 2025, the Finance Ministry said in the quarterly forecast published on Wednesday. Its previous projections saw 2024 GDP growth at 1.2%.
A steep drop in inflation has restarted real wage growth and boosted consumer demand, and the ministry increased its projection for this year’s fixed-capital creation to 2.2% from 1.2%.
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