Czechia: Economic recovery expected to continue

The Czech economy is undergoing a gradual recovery, expected to strengthen over the next two years. In addition to continued favorable consumption trends, this will be supported by a gradual improvement in foreign demand and the stabilization of current inventory declines. The labor market outlook remains positive. Although the unemployment rate may rise slightly, it will remain very low overall, and real wages, which returned to growth this year, are expected to continue rising over the next two years. Despite month-to-month volatility, inflation has returned close to the target this year, and a similar trend is anticipated in the coming years.