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.