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KB: GDP will grow 0.6%, prices 11.8%

(CIANEWS) - Komerční banka's (KB) forecast for 2023 sees real growth in the Czech economy of 0.6% compared to 0.3% forecast in January. On the other hand, the inflation outlook has been revised lower, to 11.8% from the original 12.9%. Chief economist Jan Vejmělek said that energy prices were the key variable. While in 2022 the extreme rise in the price of energy commodities contributed significantly to inflation and recession, this year the opposite will be true. KB expects the spillover of lower wholesale energy prices into consumer prices to be gradual this year, with a larger spillover not occurring until early next year.

 

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