21st May 2015

Economic Policy: IMF: More is needed to sustain recovery of the Czech economy


„The economy is gaining momentum on account of improving domestic demand and strong exports. Fiscal policy has been supportive of the recovery and the central bank’s use of an exchange rate floor to achieve its inflation objective has helped stem deflationary pressures. But more is needed to sustain the recovery. A growth-friendly medium-term fiscal strategy, enshrined in legislation; structural reforms to encourage investment and enhance productivity; and continued efforts to preserve financial stability and achieve the central bank’s inflation target are the top priorities.“

The IMF missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

To view the rest of the IMF Concluding Statement for the Czech Republic, click here.

Members of the American Chamber of Commerce in the Czech Republic