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Macro - Country Economic Forecasts - Czech Republic

Publisher Oxford Economics
Published Dec 29, 2025
Length 8 Pages
SKU # OFE20686060

Description

We have upgraded our 2026 Czech GDP growth forecast by 0.2pp to 2.2%. In addition to the stronger carryover evident in the Q3 national accounts breakdown, the upgrade reflects the fiscal loosening planned by the new populist government. This will be driven mostly by current spending and will entail wider deficits due to higher borrowing. While we expect an initial boost to growth, higher borrowing costs will eventually crowd out private activity.

Table of Contents

8 Pages
Czech Republic: Fiscal loosening will provide only short-term boost
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Medium-term outlook
Economic risk
Economic risk evaluation
Risk warnings.
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Politics and policy

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