While it’s still on the upswing, the Czech economy is set to slow down from the 2015’s 4.2 percent growth to a mere 2.1 percent in 2016, according to a new forecast by the European Commission. The slow down is taking place in part because generous subsidies from the European Union have run out, leaving GDP growth depending upon domestic demand. In 2017, the EC predicts GDP growth of 2.7 percent, with unemployment expected to drop from 5.1 percent in 2015 to 4.4 percent in 2017. Inflation, meanwhile, should remain below the Czech National Bank’s 2 percent target until 2017.
