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), 200510 221
Area (000 sq km)79
GDP (Billion USD), 2005206.5
Life expectancy at birth (Women, Men), 200479.0, 72.6
Total labour force (000s), 20055 174
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
GDP growth6.24.84.6
Consumer price index2.83.43.1
Unemployment rate (%)
General government financial balance
(% GDP)
Current account balance (% GDP)-2.9-2.0-2.0
Source: OECD©OECD Observer No. 258/259, December 2006

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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