Czech economic performance has been impressive, with output growing strongly and unemployment declining steadily. Growth is projected to slow this year, however, and to remain moderate over the medium term. The challenge for the authorities is to create conditions for a sustained increase in potential growth and to maintain macroeconomic stability, says IMF Mission in its Article IV Consultation Concluding Statement.
To this end, the mission recommends (i) anchoring fiscal policy in a medium-term framework enshrined in legislation that would ensure long-term fiscal sustainability and enhance policy predictability; (ii) maintaining accommodative monetary conditions while setting the stage for the eventual normalization of monetary policy; (iii) remaining vigilant toward financial sector risks; and (iv) improving the efficiency of EU fund utilization, increasing participation of certain segments of the labor force, and enhancing investment in human and physical capital.
Read full statement in English here.
Click also on the article by Radio Praha IMF cautions Czechs against lax fiscal discipline, mulls exit options from low crown.
2nd December 2022
1st December 2022