Czech GDP growth forecast revised up
The Czech Finance Ministry has revised its GDP (Gross Domestic Product) growth forecast for 2004 to 3.1% from the 2.7%. In addition, GDP growth rate was increased to 3.2% for 2005 from the previous estimate of 2.8%.
The Finance Ministry also reduced the inflation forecast for this year. According to latest report, the average inflation rate will amount to 2.9% this year. Unemployment rate was calculated as 10.3% for the end of the year and 10.4% for 2005.
The growth in household
consumption will regress to 3.5% in 2004 due to the public finance reform and rising interest rates while government
consumption is expected to fall in both 2004 and 2005.