The Czech Ministry of Finance forecasts economic growth of two percent in 2020. The office estimates economic growth in 2019 was 2.5 percent. In 2021, the MoF expects an increase of 2.2 percent.
In 2019 the economy grew 2.8 percent. The Czech Statistical Office will release data on 14 February.
Risks
The global economy slowed down significantly last year, the weakest since the recession of 2008 and 2009. Risks from abroad to the economy include growing protectionism, uncertainty over relations between the United Kingdom and European Union, and a slowdown in the economic growth of Germany and China. Risks at home to the Czech economy are the development of the labor market and the real estate market.
This year’s slower economic growth will also reflect the growing gap between state revenue and expenditure as a result of government spending measures last year.
Drivers
Economic growth will be driven by household expenditures thanks to wage growth and low unemployment in 2020 and 2021. Consumer spending will see a boost from increased pensions and other social benefits.
Inflation
Inflation is expected to reach 2.8 percent this year and 2.2 percent next year.
Average exchange rate CZK to EUR
Ministry of Finance actual and forecast average exchange rates CZK/EUR.
| Year | Average Exchange Rate |
| 2019 | 25.70 |
| 2020 | 25.40 |
| 2021 | 25.10 |
Czech National Bank Forecast
The Czech National Bank’s current forecast sees the Czech economy growing by 2.4 percent this year. In 2021, the CNB forecasts 2.8 percent growth. The bank will publish updated estimates on Thursday.
Czech Banking Association
The Czech Banking Association expects the economy to grow by 2 percent this year in the January forecast. It expects 2.5 percent for last year and 2.3 percent for 2021.