MF: Economy to grow 2.5% in 2021, 4.1% next year

(ČIA) The anticipated 2.5% growth in economic output in 2021 is expected to be driven mostly by household consumption, higher inventories and fixed capital investment, the Ministry of Finance (MF) said, adding that the adverse effects of rising input prices and disruptions in production and supply chains are expected to persist in the remainder of 2021 and early 2022. Economic growth could reach 4.1% in 2022. The forecast for the average inflation rate was raised to 3.5% in 2021 and 6.1% in 2022. The unemployment rate is projected to average 3.0% in 2021 and fall to 2.7% in 2022. Expansionary fiscal policy is expected to lead to a deficit of 7.2% of GDP and a rise in debt to 43.3% of GDP. The overall deficit is projected to reach 4.4% of GDP in 2022, with debt rising to 46.2% of GDP.



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