Macro - Country Economic Forecasts - Czech Republic

Macro - Country Economic Forecasts - Czech Republic

We have downgraded our Czech GDP growth forecasts by 0.1ppts to a 0.4% contraction this year and 0.8% growth in 2024. The economy remains in the doldrums and we see little growth in the rest of 2023. Domestically, high interest rates are dampening private consumption. Externally, falling demand for capital goods is a drag for Czech manufacturing and goods exports. In addition, the government's fiscal consolidation will weigh on growth from 2024.