The Czech Banking Association (ČBA) predicts the country’s economy will remain stagnant in 2013. In October, the ČBA predicted the Czech economy would grow by 0.5 percent, but in a recent report, the association is now saying the numbers will remain flat. Recovery is more likely in 2014, according to the ČBA, when GDP could grow by 1.9 percent. GDP dropped by 1.1 percent in 2012.
“Households consumption dropped in 2012 at a faster pace than would correspond to the development of their disposable incomes. The slump of domestic demand became the main reason behind the economic fall in the year 2012,” Luděk Niedermayer of ČBA told ČTK. “A turnaround in this development can be expected this year, which is positive news,” Niedermayer added. Loan growth as well as an increase in deposits is expected this year, despite the stagnating economy.
