Industrial Collapse, But Economy Relatively Resilient

The Czech economy remains on track for a 3.1% contraction of real GDP in 2009, as the collapse of export demand and FDI inflows feeds through to a modest contraction of domestic demand. However, we reiterate that the economy continues to display resilience in the face of Europe-wide recession, principally thanks to the relatively stable financial system. This should both limit the severity of the GDP contraction, as well as leaving the country well-placed to take advantage of a global economic recovery.

To read the full article, please choose one of the following options: