CURRENT ECONOMIC PERFORMANCE
2016 EPI score
| F (Very Poor) |
D (Poor) |
C (Fair) |
B (Good) |
A (Excellent) |
A+ (Superior) |
| <60 | 60-80 | 80-90 | 90-95 | 95-100 | >100 |
Czech Republic: gaining momentum but…
Czech Republic’s economy is gaining momentum on account of improving domestic demand and strong exports. The EPI grades its current economic performance at solid A level, with the EPI score projected to be close to 95% in 2016.
This is a strong improvement from its C level grade only a few years ago and a B level in 2014. Both exports and domestic demand are performing well, and the recovery in domestic demand is broad-based. Czech Republic’s recovery has been continuing, with GDP growth projected to accelerate to almost 4% in 2015, up from 2% in 2014. Employment continues to grow and unemployment to decline, reaching its lowest rate since the onset of the 2008 crisis and contributing to a welcome recovery in real wages. Following substantial fiscal adjustment during 2011-13, the fiscal stance eased in 2014 but the budget deficit is projected to decline below 2% in 2015. Inflation remains low, driven by low commodity prices and disinflationary environment in Europe.
The 5-Minute Economist projects Czech Republic’s EPI score to start declining gradually in the medium term from almost 97%, or an A level, currently to 94%, or a B+ level, by 2020, mainly driven by growth slowdown and a gradual pick-up in inflation, despite lower budget deficit and unemployment rate.
ECONOMIC PERFORMANCE HISTORY
EPI COMPONENTS PERFORMANCE HISTORY
Inflation
Unemployment
Budget deficit
GDP Growth
EPI DATA FOR CZECH REPUBLIC
| Year | Inflation Rate (%) | Unemployment Rate (%) | Budget Deficit as a Percent of GDP (%) | Change in Real GDP (%) | Raw EPI Score (%) | Change From Previous Year | Raw EPI performance |
|---|---|---|---|---|---|---|---|
| 2000 | 3.8 | 8.8 | 3.5 | 4.3 | 88.2 | 1.1 | C+ |
| 2001 | 4.6 | 8.2 | 5.3 | 3.1 | 84.9 | -3.3 | C |
| 2002 | 1.9 | 7.3 | 6.3 | 1.6 | 86.2 | 1.3 | C |
| 2003 | 0.1 | 7.8 | 6.4 | 3.6 | 89.2 | 3.1 | C+ |
| 2004 | 2.7 | 8.3 | 2.7 | 4.9 | 91.2 | 1.9 | B |
| 2005 | 1.9 | 7.9 | 3.1 | 6.4 | 93.5 | 2.4 | B |
| 2006 | 2.5 | 7.1 | 2.3 | 6.9 | 94.9 | 1.4 | B+ |
| 2007 | 2.9 | 5.3 | 0.7 | 5.5 | 96.7 | 1.7 | A |
| 2008 | 6.3 | 4.4 | 2.1 | 2.7 | 89.9 | -6.8 | C+ |
| 2009 | 1.0 | 6.7 | 5.5 | -4.8 | 82.0 | -7.9 | C- |
| 2010 | 1.5 | 7.3 | 4.4 | 2.3 | 89.1 | 7.1 | C+ |
| 2011 | 1.9 | 6.7 | 2.7 | 2.0 | 90.7 | 1.6 | B- |
| 2012 | 3.3 | 7.0 | 3.9 | -0.8 | 85.0 | -5.7 | C |
| 2013 | 1.4 | 7.0 | 1.2 | -0.5 | 89.9 | 4.9 | C+ |
| 2014 | 0.3 | 6.1 | 1.9 | 2.7 | 94.3 | 4.5 | B+ |
| 2015 | 0.3 | 5.0 | 0.6 | 4.5 | 98.5 | 4.2 | A |
| 2016 | 0.7 | 4 | -0.2 | 2.4 | 97.9 | -0.6 | A |
| 2017* | 2.3 | 3.8 | 0.2 | 2.8 | 96.6 | -1.3 | A |
| 2018* | 1.8 | 4.2 | 0.0 | 2.2 | 96.2 | -0.4 | A |
| 2019* | 2 | 4.5 | 0.0 | 2.3 | 95.8 | -0.4 | A- |
| 2020* | 2 | 4.5 | 0.0 | 2.3 | 95.8 | 0.0 | A- |
| 2021* | 2 | 4.5 | 0.1 | 2.3 | 95.8 | 0.0 | A- |
| 2022* | 2 | 4.5 | 0.1 | 2.3 | 95.7 | -0.1 | A- |