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Perspectives of czech economy after entry to the European union

  • Kamil Janáček
  • Eva Zamrazilová

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 the first half of 2004, industry and construction witnessed strong growth, retail trade showing a considerable slowdown. Growth in industry has continued to be more rapid in the sector of foreign controlled companies. After a slight weakening of deflation tendencies in the third quarter of 2003, last quarter of 2003 and first half of 2004 confirmed a resurgence of inflation. Growth of industrial prices was more rapid than the growth of consumer ones, predominantly due to increasing world prices of oil and metals. The labour market and public finance continue to be the main macroeconomic problems of the Czech Republic. The improvement may come only after adoption of fundamental reforms in both these areas.

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Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2004 (2004)
Issue (Month): 5 ()
Pages: 579-600

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Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:5:id:477:p:579-600
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