Economic growth in the Czech Republic will stay strong in the com- ing years and amount to -.- in ---- and -.- in ----. The largest contributor to GDP growth will continue be private con- sumption (-.- percentage points in ----). Strong wage growth will continue to underpin private consumption s share of the economy. We are forecasting the budget deficit will stay under -.- of GDP in ---- and ---- and overall government debt will fall below --.- of GDP in the coming years. The Czech Republic s trade surplus will swell to -.- of GDP in ---- and the country s current account will stay relatively balanced in the years ahead. Stronger inflation will return to the Czech Republic in ----, for when we forecast price growth to accelerate to the central bank s target of -.- . We expect the Czech National Bank to keep interest rates at -.-- and leave the koruna cap of CZK--.--/EUR in place in ---- and ----.
...Housing Boom To Continue markettoremainstrong(see chart below).Ahealthyhousing ...Cost Advantage To Erode, But Slowly hub in jeopardy over the next five to -- years. The country replaceintheshortterm(see chart below).Nevertheless,with ...Currently, the country ranks just --st of --- ing, well below its more advanced regional peers including to improve vocational training opportunities and reform the highyouthunemploymentrateofnearly-- .
...The Czech Republic will remain the most developed CEE state over the next ten years, with per capita income set to catch up with some EU--- member states by the early ----s. The country will face some key challenges, namely fiscal pressures from an ageing population, relations between Czechs and immigrant minority groups, and potential ructions with Brussels. ...
