Czech financial ministry, central bank lower 2020 growth expectation

The Czech economy is projected to grow at a slower pace next year, the Ministry of Finance and the Czech National Bank (CNB) said on Thursday.

In its latest forcast, the Ministry of Fiance lowered growth expectations for this year to 2.5 percent and for next year to 2 percent. In its July forecast, the ministry anticipated a growth rate of 2.6 percent for 2019 and 2.3 percent for 2020.

The CNB’s outlook is more optimistic, but is still lower than its previous forecasts. The latest forecast for 2019 was 2.6 percent, and 2.4 percent for 2020.

According to the Ministry of Finance, the negative development is related to the risks of economic developments abroad, especially the UK’s planned departure from the European Union. But the ministry does not expect a no-deal Brexit.

The ministry forecasted that inflation rate would reach 2.8 percent this year and 2.6 percent next year.