Home » today » Business » The Czech Republic will bounce back from the bottom, according to economists. Real wages are finally set to rise | TN.cz

The Czech Republic will bounce back from the bottom, according to economists. Real wages are finally set to rise | TN.cz

The Czech economy could finally start growing again after the New Year. Economists expect this, although they warn that the pace will be very slow and it is still not possible to assume that we will reach the level before the pandemic.

Experts assume that the Czech economy could start to pick up again from the new year. For example, the renowned financial agency Moody’s also believes in the Czech Republic abroad.

“Inflation is already on the decline, it’s a matter of time before people notice it, stop worrying about it. The low-income earners will benefit from the fact that their real wages will start to rise after a longer period of time, and then we have middle- and high-income people who have quite substantial savings from the past years and are just waiting for those savings to start spending and stop save out of caution. So an improvement can be expected from this title,” announced economist Vít Hradil.

“We will approach the two percent inflation target, unemployment will remain at relatively low numbers, and above all we wish the economy to grow,” noted economist Petr Studnička.

“In my opinion, on the horizon of six months, the Czech economy will really bounce back from the bottom, it will start to grow slowly and surely. Even the consumption of Czech households, mainly thanks to real wage growth,” says economist Petr Dufek.

However, it is said that we will have to wait for some time to reach the pre-pandemic level. The coming winter will also be decisive. High energy prices are one of the reasons why the Czech economy has stagnated for the second year running. This year, in the third quarter, GDP fell by another 0.6 percent.

“The main drop already occurred at the beginning of covid, in the third quarter of 2020, when other countries recovered quite quickly from the deepest drop in the second quarter in the spring, but we did not recover as much,” explained economist Petr Bartoň.

“On the one hand, the Czech Republic has short-term problems related to the fact that we are a more energy-intensive economy than other countries. But also long-term deficits. We didn’t build highways, we didn’t build optical networks, we didn’t invest in education, science, research. It all adds up for us now,” said economist David Marek.

The German media described the Czech economy as the sick man of Europe. At the same time, according to economists, the German economy is in a similar situation and partly responsible for the current state of ours.

The German economy is one of the largest in Europe, and the Czech Republic is its largest trading partner. The German economy is also expected to improve at the beginning of the year. This will probably benefit ours.

kdu, TN.cz

2023-11-26 19:38:00
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