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CBA Upgrades GDP Growth Forecast For 2021

CZECHIA
  • After we saw that the EC reviewed GDP growth projections positively for Poland and Hungary in its spring forecast yesterday, the Czech Banking Association (CBA) improved its GDP growth forecasts for this year, from 2.6% to 3.3%, but decreased next year's prediction from 4.6% to 4.3%.
  • As a reminder, Czech GDP fell by 5.6% in 2020 and is expected to contract by 2.1% YoY in the first quarter amid worsening Covid19 situation.
  • The economy is expected to significantly rebound in Q2 though, mainly driven by households and government consumption and investments.

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