Czech Republic: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Czech Republic
IMF Staff Country Reports, July 7, 2016
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- Czech Republic: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Czech Republic
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Bibliographic details
- Published: July 7, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475568011.002
Growth and external environment
- A favorable external environment, high utilization of EU funds, and supportive macroeconomic policies have boosted economic growth.
- Keywords highlighted: EU fund absorption, EU funds, External sector statistics.
Fiscal policy and public finances
- The authorities’ medium-term fiscal objective is appropriate.
- Fiscal framework legislation that would anchor policy is yet to be approved by parliament.
- Subjects: Fiscal policy, Fiscal stance, Public debt, Public financial management (PFM).
Monetary policy and inflation
- The central bank’s use of an exchange rate floor to achieve its inflation target has helped stem deflationary pressures.
- Inflation is still well below target.
- Keywords highlighted: Exchange rates, Foreign exchange, headline inflation, inflation expectation, monetary policy rate, indexation.
Financial sector resilience
- The financial system is sound and resilient to shocks.
- Subjects: Financial and economic statistics, ISCR (implied in keyword list).
Policy recommendations and priorities
- Policies should aim at comprehensively addressing obstacles to strong and sustained growth, while safeguarding macroeconomic stability.
- Emphasis areas implied by the report: strengthen fiscal anchoring through legislative approval of fiscal framework, continue supportive macroeconomic policies, and maintain measures addressing inflation shortfalls.
Source: Czech Republic: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Czech Republic