IMF Staff Country Reports

Czech Republic: 2024 Article IV Consultation-Press Release; and Staff Report

February 4, 2025

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Format: Chicago

International Monetary Fund. European Dept. "Czech Republic: 2024 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2025, 035 (2025), accessed March 17, 2025, https://doi.org/10.5089/9798229000031.002

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Summary

The Czech Republic is evolving from a heavily manufacturing-based, export-oriented hub to a more mature and diversified economy. Non-auto manufacturing, energy, and construction, once important Czech engines of growth, have run out of steam, hampered by decelerating productivity growth, higher energy costs, and sluggish demand. The auto industry has shown resilience so far, but the required transition to electric vehicles and exposure to foreign competition are set to exert significant pressures in the coming years. Higher value-added sectors, including ICT services, are constrained by lack of skilled labor and limited access to capital, undermining their ability to compete in global markets.

Subject: Central bank policy rate, Financial services, Inflation, Labor, Labor markets, Prices, Production, Productivity

Keywords: Central bank policy rate, Currency of the Czech Republic, FSAP participation, FSAP update, Global, Inflation, Labor markets, Managing inflation risk, Productivity, Services inflation

Publication Details

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