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Czech Finance Ministry Publishes August Macroeconomic Forecast

CZECHIA

The Finance Ministry revised the growth outlook for Czechia lower in the latest edition of the quarterly macroeconomic forecast. The economy is now expected to contract by 0.2% Y/Y this year (versus +0.1% previously) and grow by 2.3% Y/Y next year (versus +3.0% previously).

  • At the same time, current-account balance outlook improved. The Ministry's current-account deficit forecasts for 2023 and 2024 were cut to 1.7% and 0.6% respectively, from 3.5% and 1.9%.
  • Finance Minister Zbynek Stanjura said that he wants to have a "serious debate" early next year on whether to scrap the windfall company on energy companies and banks. The tax was originally implemented for 2023-2025.
  • Amid the ongoing efforts to reduce fiscal shortfalls, Stanjura told reporters that the government may need to find an additional CZK15-20bn worth of savings this year to meet the CZK295bn deficit target.

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