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Czech Economy at the Time of EU Entry

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  • Kamil Janáček
  • Eva Zamrazilová

Abstract

In 2003, the economic growth moderately accelerated. The main factor of this acceleration was massive household consumption accompanied by the revival of fixed capital formation. Gradual narrowing of the gap between consumer and investment demand was one of major achievements of 2003, supporting the long-term sustainability of Czech economic growth. In 2003, both imports and exports accelerated, the trade deficit remaining at the same level as in 2002. Considering acceleration of Czech economic growth in 2003, stagnating level of trade deficit is favourable. The reason for continuously high current account deficit is growing deficit of income balance and declining surplus of service balance. The deficit of the current account in the last two years was not provoked by growing imports (as in the nineties), but has been predominantly the price for the massive foreign direct investment inflows in the past decade.

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Bibliographic Info

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

Volume (Year): 2004 (2004)
Issue (Month): 3 ()
Pages: 195-216

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Handle: RePEc:prg:jnlpep:v:2004:y:2004:i:3:id:239:p:195-216

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Related research

Keywords: economic growth; labour market; inflation; external balance; investment demand; consumer demand;

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