Economic policy

This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.

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Spotlight issue

10th March 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Inflation continues to slow down gradually

Inflation slowed in February due to stagnant food prices but also due to a core component that does not include food prices. On the other hand, fuels prices became more expensive. The base effect will increase the annual inflation rate in the coming months. We still expect the CNB to raise rates in the last quarter of this year.

8th March 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Soaring Czech wages mainly driven by one-off factors

The 6.5% of Czech wage growth in 4Q20 is a positive surprise, but this quarter was affected by several one-off factors and bonuses for healthcare workers. This year we expect wage growth to slip below 3%

3rd March 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

After modest growth in 4Q20, the economy is likely to decline again in 1Q21

According to the CZSO’s refined estimate, the Czech economy grew by 0.6% qoq in 4Q20, with the year-on-year decline easing from -4.9% to -4.7%. These figures were slightly up on the advance estimates from the beginning of February of +0.3% qoq and -5.0% yoy. For full-year 2020, the economy recorded its steepest ever decline, of 5.6%, due to the pandemic.