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Czech economy in 2000 and 2001

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  • Jiří Křovák
  • Jan Filáček

Abstract

We predict that GDP will grow 1.5 % in 2000 after falling 0.2 % in 1999. Sluggish growth in 2000 will be driven by domestic demand, namely fixed investment. Interest rates set by the CNB are now in a "parking zone". The two-week repo rate remains at 5.25 %. We do not expect any significant (upward) changes during the course of this year. We expect average annual inflation (CPI) to increase to 3.8 % in 2000. Unemployment will rise to 10.8 % (at yearend) and employment will decline by 2 %. Real wages will grow by a modest 1.6 %. We predict that the trade gap will widen to CZK 85 bil. and the current account deficit will comprise some 2.4 % of GDP in 2000. The CZK against the euro will be more or less nominally stable.

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Bibliographic Info

Article provided by University of Economics, Prague in its journal Prague Economic Papers.

Volume (Year): 2000 (2000)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:prg:jnlpep:v:2000:y:2000:i:2:id:71

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Keywords: Czech economy; unemployment; economic growth; wages; macroeconomic analysis; inflation;

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