The Czech economy is doing well. Growth is solid and the unemployment rate is low. Inflation is back at the target level. The public finances are in good condition, and the banking system is liquid and profitable. However, policy makers face important challenges: household financial vulnerabilities appear to be increasing; labor—especially skilled labor—is in short supply; and several aspects of public administration and processes need improvement. Addressing these and other issues will require a well calibrated combination of monetary, macroprudential, financial, structural, and fiscal policies, the International Monetary Fund (IMF) states in their analysis (Czech Republic – 2017 Article IV Consultation Concluding Statement of the IMF Mission Prague, May 15, 2017).
3rd February 2023
27th January 2023