Czech Republic: 2021 Article IV Consultation-Press Release; Staff Report; Supplementary Information; and Statement by the Executive Director for the Czech Republic

2021 Article IV Consultation-Press Release; Staff Report; Supplementary Information; and Statement by the Executive Director for the Czech Republic
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Volume/Issue: Volume 2022 Issue 023
Publication date: January 2022
ISBN: 9798400200182
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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , COVID infection , inflation pressure , data release , staff expectation , staff appraisal , Inflation , External sector statistics , Labor markets , Global , Europe

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Summary

The Czech Republic entered the pandemic on a strong economic footing. Amid another surge in virus infections, the outlook is for a continued rebound in activity. However, the risks are tilted to the downside. Inflation remained marginally above the upper tolerance band in 2020 and increased substantially in late 2021. Pressures in the labor market remain. Macrofinancial vulnerabilities persist as house price growth has reached record highs amid significant risk-taking by lenders.