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November 27, 2017 7:00 am | FILED UNDER: europe

Czech Ministry of Finance Forecasts Modest Growth

By ČTK

Prague, Nov 26 (CTK) – The Czech Republic’s economic level vis-a-vis the 19 euro area countries will be growing modestly in the coming years, the Finance Ministry said in its November macroeconomic forecast.

 

The country’s gross domestic product (GDP) per capita will increase to 85 percent of the eurozone average this year and to 86 percent next year from last year’s 83 percent thanks to the strong economic growth, the ministry said in its forecast.

 

The Czech Republic will be doing better in this respect than Poland, Hungary, Slovakia, Portugal and Slovenia.

 

The Czech price level stayed at 63 percent of the euro area average last year, according to the document.

 

At the level of GDP, the comparative price level may be gradually rising to reach 68 percent of the euro area average in 2018. “This growth should not endanger competitiveness of the Czech economy,” said the ministry.

 

Countries’ economic levels are compared based on purchasing power parity (PPP), which is an economic theory that compares different countries’ currencies through a market “basket of goods” approach.

 

Per capita GDP at purchasing power parity in CR, Slovakia, Poland, Hungary and Slovenia vis-a-vis 19 eurozone countries (in pct):

 

country 2011 2012 2013 2014 2015 2016 2017 (estimate) 2018 (estimate)
CR 77 77 78 81 83 83 85 86
Slovakia 69 71 72 73 73 73 74 75
Poland 60 62 63 63 64 65 67 68
Hungary 61 61 63 64 65 64 65 66
Slovenia 77 77 76 78 78 79 80 81

 

Source: Finance Ministry’s macroeconomic forecast, November 2017

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