Banks expect GDP growth to beat 4 percent
9. 11. 2015 | Source: BusinessInfo.cz
As recently as August the Czech Banking Association [ČBA] was estimating likely GDP growth for this year at 3.2 percent. But, factoring in indications of a strong end-ofyear economic performance, the association has revised its prediction upwards to 4.2 percent.
The key driver is said to be robust investment demand. "One-off factors are contributing to high economic growth, with the most striking being an acceleration of investment activities co-financed from the European funds," said Dana Hájková, an analyst at Česká spořitelna bank. Domestic consumption is also lifting the economy. It is expected to expand by more than 3.0 percent.
The Czech economy is outperforming those of the majority of eurozone member states. Its revival is also reflected in the unemployment figures, according to bank data. By the end of the year, the jobless rate is expected to fall to 6.5 percent. Wage growth is set to hit 3.2 percent.
The economic upswing should next year continue without hindrance, but at a lower, though sustainable, tempo.
The ČBA is forecasting 2.5 percent growth for 2016. "The recovery will be further pulled along by the manufacturing industry, but things are looking favourable for the majority of segments in our economy," said Martin Kupka, chief economist at the ČSOB bank group.
Originally published in E15 weekly, economic and business newsmagazine. Author: Markéta Žižková