PRAGUE, April 14 (Xinhua) — The Czech economy is expected to grow by 3.1 percent in 2021, according to a forecast published Wednesday by the country’s Finance Ministry.
According to the ministry, increased vaccination this year would help improve the negative effects of the ongoing COVID-19 pandemic and drive domestic and international economic recovery.
Though the ministry expects household consumption to stagnate in 2021, it predicts that it will accelerate in 2022 and help GDP grow by 3.7 percent.
In 2021, inflation would reach 2.5 percent and unemployment hit 3.6 percent, while in 2022 these figures could be 2.3 percent and 3.7 percent respectively, says the forecast.
The forecast notes some potential risks, including mainly a deterioration of the epidemiological situation and problems in trade between the European Union and the United Kingdom resulting from Brexit.
Domestically, developments in the automotive industry, labor market responses to possible structural changes in the economy, overvaluation of residential property prices and a possible increase in non-performing loans could pose risks, the forecast notes. Enditem