Prague, 7 January 2019 – In 2019, the Czech economy will grow at 2.2%. Owing to the ongoing shortage of workforce, salaries will keep rising (+6.5%) at an ever faster pace compared to work productivity. Inflation will remain at above 2% and the central bank’s currency policy should be less aggressive than last year. These are the conclusions of the 2019 Czech economic outlook prepared by a team of Deloitte’s economists.
According to forecasts, the global economy will slow down to 4.0% GDP growth in 2019 and that of Eurozone to 1.8%. In the Czech Republic, Deloitte’s economists expect GDP growth to slow down to 2.2%. However, this will not be significantly reflected in the labour market. Unemployment will remain low and salary growth will be only slightly slower than last year. 2019 will mark the fourth consecutive year when salaries will grow faster than work productivity.
| Indicators | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|
| GDP growth (%, yoy) | 3,0 | 2,5 | 2,2 | 2,1 |
| Inflation (%, yoy) | 2,0 | 2,6 | 2,3 | 2,0 |
| Unemployment (%) | 2,2 | 2,1 | 2,2 | 2,3 |
| Public budget balance (% of GDP) | 1,1 | 0,2 | -0,1 | -0,3 |
| Gross public debt (% of GDP) | 32,6 | 31,5 | 30,7 | 30,1 |
| Current account balance (% of GDP) | -0,2 | -0,0 | 0,5 | 0,7 |
Table provided by European Comission.
Czech Republic Economy Overview 