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CNB: Koruna may weaken to CZK 30/EUR in adverse scenario

(CIANEWS) - In its baseline three-year economic scenario, the Czech National Bank forecasts GDP growth to accelerate to 3% in 2024 and 2025. Inflation should reach single digits at the end of 2023 and fall to the 2% target in 2024. The koruna could weaken to CZK 24.50/EUR in 2024. However, hypothetical adverse global developments related to the war in Ukraine, rising commodity prices and ongoing problems with the functioning of supply and demand chains could lead to inflation remaining at elevated levels for a longer period. GDP would thus fall by around 5% in the first and second years of the scenario (2023, 2024). Unemployment would gradually rise up to 7.5%. The exchange rate would gradually depreciate up to CZK 30/EUR. The Central Bank states this in the Financial Stability Report - Spring 2023.

 

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