Czech Savings Bank Predicts 3.7% GDP Growth for 2015
- New Europe Investor
- July 22, 2015
The Czech Republic’s largest bank, Czech Savings Bank (Česká spořitelna), says the economy will grow by 3.7% this year.
This is similar to UniCredit’s forecast, which predicted growth of 3.8% for 2015 in June.
Both predictions are also significantly higher than official statistics. The Finance Ministry’s last forecast was in April when they predicted 2.7%, but analysts are expecting an upgrade of this by the ministry later this month.
Figures are being boosted by household consumption that is having a positive impact on real wages and is also contributing to falling unemployment.
The risk of imported deflation from the eurozone appears to have dissipated with the headline rate for the year expected to be 0.7%, according to Czech Savings Bank.
Both banks predict GDP growth will slow next year. Czech Savings banks has suggested 2.2% with UniCredit predicting 2.8%. The official government forecast in April was 2.5% for 2016.
Czech Savings Bank has stated that there will be pressure on the currency to strengthen in the second half of 2016. Chief economist, David Navratil said interventions by the Czech central bank to keep the currency weak may be halted as a result.