The newest European Semester country report issued by the European Commission assesses Czech progress on structural reforms and outlines macroeconomic prevention and correction measures taken by the Czech government in the past years.
According to the analysis, continued economic growth offers a valuable opportunity to intensify structural reforms. Economic growth remains solid but may soften somewhat in the coming years. Public finances are sound but long-term sustainability is less favourable. The performance of the labour market is very good but labour shortages are becoming more acute, spurring wage increases. The overall picture of relatively low inequality and the continued rise in living standards masks some increasing regional disparities. Focusing investments in education and upskilling, domestic innovation, and transport and digital infrastructure would strengthen the potential for long-term growth.
The report lists key structural issues to be addressed:
At the EU level, the European Commission finds that productivity levels remain subdued, population ageing is intensifying and rapid technological change is having a significant impact on labour markets. Real household income remains below pre-crisis levels in some Member States. Youth unemployment has been significantly reduced, but is still unacceptably high in some Member States. At a time of more pronounced global uncertainty, it is crucial that EU Member States step up their action to boost productivity, improve the resilience of their economies and ensure that economic growth benefits all citizens.
3rd February 2023
27th January 2023