Czech Economic Growth

Czech economic growth in the second quarter of this year slowed down slightly. For the full year 2016 will reach a pace of 2.8%. The reason for this slowdown is a temporary decrease in government and corporate investments co-financed from European Union funds. On the contrary continue to support the economy loose monetary conditions, low oil prices and growing foreign demand. In the next two years, economic growth will remain at similar pace as this year. On one side will resume increasing investment, but on the other hand, the domestic economy will grow somewhat hampered by a temporary slowdown in foreign demand and eventually less loose monetary conditions after the completion of the exchange rate commitment of the Czech National Bank. Continued economic growth will lead to an increase in wage growth. The unemployment rate will decline only slightly.

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