Czech Finance Ministry Reduces GDP Forecast for This Year

The Czech Finance Ministry reduced its economic-growth forecast for this year as a slower recovery from a recession may complicate efforts to cut the budget deficit.

The ministry forecasts gross domestic product to rise 0.1 percent in 2013, compared with its 0.7 percent estimate in October, it said today in an e-mailed statement. The expansion will accelerate to 1.4 percent in 2014, the Prague-based ministry forecasts.

The Czech economy is suffering from weakening domestic demand after the Cabinet cut investments and raised taxes to trim the budget gap. The public-finance deficit will amount to 2.9 percent of GDP this year, in line with the government’s target, the Finance Ministry estimates.

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