CIAO DATE: 11/2012
May 2012
GDP fell by a larger than expected 1% on the quarter in 2012Q1 according to initial data released in mid-May. As a result, we now expect GDP will fall 1.1% in 2012. On the political side, the government has avoided a snap election by surviving a confidence vote on 27 April. However, it will find it harder to stick to its austerity plans as its majority was weakened by the vote. Under current policies, we now expect the fiscal deficit to rise to 3.6% of GDP in 2012 from 3.1% in 2011 due to the weakness of the economy.
Resource link: Country Economic Forecasts: Czech Republic [PDF] - 234K