Czech Republic: Staff Report for the 2002 Article IV Consultation

IMF Staff Country Reports, August 7, 2002

Source details

Canonical URL: Czech Republic: Staff Report for the 2002 Article IV Consultation

Following a period of inaction on the structural front and a protracted recession, economic growth in the Czech Republic has picked up.
Underlying this performance have been supportive macroeconomic policies, large foreign direct investment, and steady progress with structural reform.
Enterprise restructuring has led to rising structural unemployment and large regional disparities in unemployment rates.
Sizable losses were accumulated by banks, which had to be transferred to the government to allow the banks to be sold to strategic investors, adding to medium-term fiscal pressures.

Large foreign direct investment supported the recovery in economic growth.
Balance of payments and FDI inflow are identified among the subject areas of the report.

Sizable banking losses were transferred to the government to facilitate sales to strategic investors.
These transfers are noted as adding to medium-term fiscal pressures.
Government debt management and public financial management (PFM) are listed as subjects relevant to the report.

Enterprise restructuring produced rising structural unemployment.
The report highlights large regional disparities in unemployment rates.
Structural reform progress is described as steady, yet earlier inaction contributed to the prior recession.

Source: Czech Republic: Staff Report for the 2002 Article IV Consultation