GDP growth in the Czech Republic is likely to slow to 3.3 percent, according to the daily Mladá fronta Dnes. That would mark a significant cooling compared to 2017’s expected result of 4.4 percent growth. Thanks to the strengthening of the crown, it writes, citing the Ministry of Finance, inflation should also slow from 2.5 percent this year to 2.3 percent. “In 2018, we can expect a slowing of economic growth due to falling demand abroad and the impact of a stronger currency along with higher interest rates. This easing won’t be enough, however, to reduce the pressure on labor markets,” says Deloitte’s chief economist David Marek. MfD also quotes CSOB analyst Petr Dufek as saying the economy is running into its upper limits of output due to a lack of labor. “The economy may be growing strongly at the moment, but it will begin gradually to slow in 2018,” he says.
