Czech Government Cuts GDP Outlook, Keeps Deficit Target

The Czech Finance Ministry cut its forecasts for economic output this year and next, while keeping its budget-deficit targets even amid a recession.

The Prague-based ministry forecasts gross domestic product to fall 1 percent this year, compared with a previous forecast for a 0.5 percent contraction, it said in an e-mailed statement today. The ministry cut next year’s GDP growth prediction to 0.7 percent, from a previously expected 1 percent expansion.

The public-finance deficit will be 3.2 percent of GDP this year, compared with a revised 3.3 percent percent shortfall in 2011, the ministry said. It kept the forecast for the 2013 deficit at 2.9 percent, which matches the current government target.

To contact the reporter on this story: Peter Laca in Prague at placa@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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