2016 OECD Economic Surveys: Czech Republic 2016

image of OECD Economic Surveys: Czech Republic 2016

This 2016 OECD Economic Survey of the Czech Republic examines recent economic developments, policies and prospects. The special chapters cover: Fostering productivity for sustainable convergence; Public sector effectiveness.



Executive summary

Growth picked up strongly in 2015 thanks to a combination of temporary effects, mostly absorption of expiring EU funds and low commodity prices, but the recovery since the global crisis has been uneven, mainly because of volatile investment. Monetary policy continues to provide economic support, and the unconventional exchange rate floor appears to have achieved its purpose. Indeed, inflation is projected to return to the target of 2% in the course of 2017, mainly driven by wage increases thanks to a strong labour market. The fiscal position is good but ageing-related spending will increase, calling for long-lasting reforms, in particular of the pension system. The Czech Republic scores well on indicators of inequality and rates of poverty are very low, although important gender equity issues need continued attention.



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