Czech Republic: Inflation to rise
Growth peaked at the end of 2005 and is expected to level out over the projection period with annual GDP growth averaging 5.25% over 2006-08. While export and investment growth are expected to remain strong and household consumption growth to increase, these will be accompanied by stronger import growth. Headline inflation will be pushed up, largely due to increases in excise duty and price deregulation.
Political stalemate following the general election in June has meant delay in the structural reforms needed for sustainable deficit reduction. No concrete progress is being made in either pensions or healthcare and weaknesses in the Medium-term Expenditure Framework are not being addressed.
|Population (000s), 2005||10 221|
|Area (000 sq km)||79|
|GDP (Billion USD), 2005||206.5|
|Life expectancy at birth (Women, Men), 2004||79.0, 72.6|
|Total labour force (000s), 2005||5 174|
|Government type||Parliamentary Democracy|
|Indicators||% change unless otherwise indicated|
|Consumer price index||2.8||3.4||3.1|
|Unemployment rate (%)||7.3||6.8||6.3|
|General government financial balance|
|Current account balance (% GDP)||-2.9||-2.0||-2.0|
No. 258/259, December 2006