## Czech Republic: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic

_IMF Staff Country Reports, June 26, 2017_

## Source details

**Canonical URL:** [Czech Republic: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic](https://www.imf.org/en/publications/cr/issues/2017/06/26/czech-republic-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45003)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/06/26/czech-republic-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45003/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/06/26/czech-republic-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45003/index.json)
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## Bibliographic details
- Published: June 26, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484305256.002

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### Summary findings
- The Czech economy grew by 2.4 percent in 2016.
- Unemployment is now the lowest in the European Union.
- Headline inflation is at the target.
- External deflation pressure has faded.
- Nominal incomes are growing solidly.
- Given momentum in the economy, real GDP growth is projected to increase to 3 percent in 2017, largely driven by domestic demand.
- Strong economic growth and better revenue collection mean a surplus of 0.4 percent of GDP is expected for 2017.
- Current policies and improved tax collection would imply continued small surpluses from 2018.

### Macroeconomic outlook
- 2016 actual real GDP growth: 2.4 percent.
- 2017 projected real GDP growth: 3 percent (driven largely by domestic demand).
- Fiscal balance projection for 2017: surplus of 0.4 percent of GDP.
- Fiscal outlook beyond 2017: continued small surpluses from 2018 under current policies and improved tax collection.

### Prices, labor market, and external conditions
- Headline inflation: at the target.
- External deflation pressure: has faded.
- Unemployment: lowest in the European Union.
- Nominal incomes: growing solidly.

### Policy-relevant implications
- Continued implementation of current policies combined with improved tax collection is expected to sustain small fiscal surpluses from 2018.
- Strong domestic demand is the primary driver of the 2017 growth projection.

*Czech Republic: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic — June 26, 2017.*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17168.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17168.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/06/26/czech-republic-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45003_