According to the latest macroeconomic forecast of the Ministry of Finance, the Czech economy will experience a decline in its output next year. Gross domestic product will return to growth in 2024 and 2025, estimates the office of Zbyněk Stanjura.
The end of the recession of the Czech economy?
“According to the MF’s November macroeconomic forecast, the Czech economy will grow by 2.4 percent this year, although we estimate that it is currently undergoing a mild recession,” the Ministry of Finance said on its website on the current macroeconomic forecast.
The recession will also trouble the Czech economy next year, for which the Ministry of Finance expects a decline in gross domestic product of 0.2 percent. On the contrary, the Czech economy will grow by 3 percent in 2023 and by 2.7 percent in 2024.
Will inflation fall next year?
The recession is caused by persistent double-digit year-on-year increases in the price level. The average annual inflation rate is expected to fall to 9.5 percent next year and to 3.5 percent in 2024. Zbyněk Stanjura‘s office also expects an increase in the unemployment rate. It should rise from the current 2.2 percent to 3.1 percent in 2023. In the coming years, however, the unemployment rate will decrease again, the Ministry of Finance estimates.
