Czech Prime Minister Andrej Babis


Babis Looks to Investments to Push GDP Growth

Prague, Feb 11 (CTK) – Outgoing Prime Minister Andrej Babis appreciates the fact that the Czech Republic has kept the A+ credit rating from Fitch Ratings agency, he would like if Czech economic growth was pulled by investments whose massive support he plans next year, Babis told CTK on Saturday.


The agency affirmed the rating on Friday, it said that, for example, continuing fall of the government debt to GDP ratio could help improve the rating.


Babis said he had dedicated a lot of attention to this parametre already in the post of finance minister in the previous government.


“I cared about this parametre in the post of finance minister, we have one of the lowest figures in Europe,” he told CTK.


However, Babis is a bit sorry that investments do not contribute more to the result.


“This is why we want to invest massively mainly in the 2019 budget. As GDP grows, massive investments are no problem, even at a cost of a higher deficit,” he declared.


In connection with his Friday’s visit to Brno, he mentioned the local maternity hospital and train station as potential investment targets.


“We want to map all kinds of investments… The main goal is to have legislation which will allow it,” he added.


Fitch estimates that the Czech Republic’s real GDP expanded by 4.3 percent last year, in particular thanks to household consumption backed by growing disposable incomes.


Fitch expects Czech GDP growth to slow down to 3.5 percent this year and to 2.9 percent in 2019.


Credit rating is important for investors, it shows them the probability of correct loan repayment.