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UPDATE 1-Czech ministry sees economy avoiding decline in 2023

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates Table to include 2025 forecasts, wage forecasts) PRAGUE, April 12 (Reuters) - The Czech economy should avoid a decline in 2023, the Finance Ministry said in an updated outlook on Wednesday, as foreign trade helps compensate for weaker domestic demand amid still-high inflation. The ministry forecast a 0.1% rise in gross domestic product in 2023, revising upward a previous prediction of a 0.5% decline. The economy should expand by 3.0% in 2024 as inflation eases. The new outlook saw inflation elevated at 10.9% on average this year but falling to 2.4% in 2024, faster than the previous outlook's forecast of 3.8%. The state fiscal deficit will fall this year to 3.5% of GDP and then decline further to below the European Union-mandated ceiling of 3% in 2024. The following is the table for 2023-2025, with previous forecasts in brackets.
Indicator/Year 2023 2024 2025 GDP growth (%) 0.1 (-0.5) 2.9 (2.7) 3.0 (3.0)



avg inflation (%) 10.9 (10.4) 2.2 (2.8) 2.4 (3.8)



avg nominal wage (%) 8.0 (7.5) 5.7 (5.8) 4.3 (4.3) avg real wage (%) -2.6 (-2.6) 3.2 (1.9) 2.0 (1.4) general govt balance (%/GDP) -3.5 (-4.2) -2.4 (n/a) -2.9 (n/a)



end-yr general govt debt (%/GDP) 43.5 (45.8) 44.4 (n/a) 44.0 (n/a)



NOTE. The ministry released the forecasts on its website The fiscal projections are under the European Union's ESA 2010 rules. The public sector finances include the state budget as well as local budgets, public health insurance and various off-budget funds. Details on
** To monitor in real-time Czech economic data releases in the Eikon app and view historical data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/Economic-Monitor?g=2E (Reporting by Robert Muller, editing by Jason Hovet)

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