IMF Staff Country Reports

Czech Republic : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Czech Republic

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

July 7, 2016

Electronic Access:

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Summary:

A favorable external environment, high utilization of EU funds, and supportive macroeconomic policies have boosted economic growth. The authorities’ medium-term fiscal objective is appropriate, but fiscal framework legislation that would anchor policy is yet to be approved by parliament. The central bank’s use of an exchange rate floor to achieve its inflation target has helped stem deflationary pressures, but inflation is still well below target. The financial system is sound and resilient to shocks. Policy recommendations. Policies should aim at comprehensively addressing obstacles to strong and sustained growth, while safeguarding macroeconomic stability.

Series:

Country Report No. 16/213

Subject:

Article IV consultation reports Balance of payments statistics Bank supervision Czech Republic Debt sustainability analysis Economic growth Economic indicators Fiscal policy Fiscal reforms Inflation targeting Monetary policy Negative interest rates Press releases Staff Reports