Economic perspective for the Czech Republic
— Press release —
The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation that maintains a high-income welfare state and the European social model.
The Czech economy is projected to grow by 1.8% in 2022 and 2% in 2023. This is affected by supply disruptions, rising prices and overall uncertainty related to the war in Ukraine. Trade and manufacturing output will slow. Inflation is expected to start subsiding in the second half of 2022. The energy prices are rising, the labor market remains tight and the real wages of employees are falling. To protect households and companies from rising prices, several supportive measures have been introduced.
The Czech Republic specializes in automotive manufacturing, which is now affected by disruptions in global chain and high prices of raw materials. Trade and private investment will weaken in 2022 and 2023.
To help attract and retain a productive skilled workforce there is a need for boosting domestic labor supply, better matching candidates according to the skills required, effective using immigration policy. Greenering the economy, i.e. investment into renewable energy and electro mobility, will help decrease the dependence on the gas and oil markets and recover.
(Source: OECD)