FAMAGUSTA GAZETTE — The Czech Ministry of Finance has lowered its 2025 GDP growth forecast to 2.0 percent, down from January’s projection of 2.3 percent, citing the impact of new U.S. tariffs on key industries, including cars, car parts, steel, and aluminum.
U.S. President Donald Trump recently announced a 10-percent baseline tariff on all imports, with higher rates for specific trading partners, including a 20-percent levy on EU imports.
Although Trump has introduced a 90-day pause, concerns over the unpredictability of U.S. policies persist.
The revised forecast excludes the potential economic impact of these “reciprocal” tariffs.
Czech Finance Minister Zbynek Stanjura warned that if the 20-percent tariffs are reinstated, the Czech economy could lose 0.6 to 0.7 percentage points of growth.
The economy recorded 1.1 percent growth in 2024.
Despite external pressures, the Finance Ministry predicts economic resilience, driven by robust household consumption, increased investment, and higher public spending. It anticipates growth reaching 2.4 percent.