MF predicts GDP growth by 3.2%, faster inflation

(ČIA) All components of domestic demand should drive the expected increase in economic performance by 3.2% in 2021, most of all investments in fixed capital and household consumption. This statement was provided by the Czech Ministry of Finance (MF) within the August macroeconomic forecast. In 2022, GDP growth could increase to 4.2% due to an ongoing revival of private consumption. At the same time, the Ministry increased its forecast of the average inflation rate to 3.2% in 2021 and 3.5% in 2022. The forecast is based on the high prices of energy and other commodities. According to the Ministry, development in the labour market remains positive. Still, the average unemployment rate should increase to 3.0% in 2021 due to the delayed effects of the economic slump and could drop to 2.7% in 2022 due to economic revival.



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