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Czech 2012 Growth Outlook ‘Flat’ on Euro-Area Crisis, IMF Says

The outlook for growth in the Czech Republic this year is “flat” as the euro-area debt crisis curbs demand for the country’s exports, the International Monetary Fund said.

The Czech Republic should craft long-term regulation to enhance fiscal discipline while the central bank should adopt an “easing bias” to help stimulate the economy, the IMF said today in a report released at the end of its regular Article IV consultations with policy makers.

Inflation will accelerate this year as a result of increases in the value-added tax rates and then be in line with the central bank’s target from 2013, Masanori Yoshida, IMF mission chief, told a press conference today in Prague.

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