(CIANEWS) - The Czech Banking Association (CBA) expects the economy to grow moderately in 2023 and by almost 3% in 2024. The more favourable development in Q1 23, according to the preliminary estimate, suggests that the domestic economy has already very narrowly emerged from a mild recession. The estimate has improved slightly compared to the February forecast, with inflation revised upwards and averaging around the 11% mark, and around 8% at the end of the year. In 2024, the forecast assumes a decline to 3%. The labour market remains in good shape, which has led to a downward revision of the unemployment rate and also to a faster estimate of wage growth (9%). The decline in real wages will continue this year, but will be milder than last year. CNB’s interest rates will start to fall, with the forecast seeing the base rate at 6.5% at the end of the year and slightly above 4% at the end of 2024.