Czech economy to grow by 0.1 pct this year - FinMin's survey

The Czech economy will expand by 0.1 percent on average this year and the growth will accelerate in the years ahead, said a survey conducted by the Finance Ministry among 15 domestic professional institutions.

 The economy will rise by 1.6 percent in 2013, by 1.9 percent in the year 2014 and by 2 percent in 2015.

 The Finance Ministry expects a 0.2 percent growth of the gross domestic product (GDP) this year and the Czech National Bank (CNB) predicts stagnation.

 For next year, the ministry foresees a rise of 1.3 percent and the CNB a growth of 1.9 percent.

 Consumer price development will be affected to a great extent by changes in indirect taxes, mainly in VAT rates, the survey showed.

 Average inflation rate will increase to 3.3 percent this year and will fall to 2.2 percent next year, according to the survey.

 Wages and salaries will post a nominal rise of 1.8 percent this year and will add 2.7 percent in nominal terms next year. Adjusted for inflation, real wage will fall this year. Nominal wage growth will continue to reach 3.2 percent in the year 2015.

 The ministry has been conducting the survey since 1996, twice a year. The survey takes into account the forecasts of the Finance Ministry, Industry and Trade Ministry, Labour and Social Affairs Ministry, CNB, Ceska sporitelna, CSOB, Komercni banka, Liberal Institute, National Economic Institute, Patria Finance, Generali PPF Asset Management, Raiffeisenbank, Union of Bohemian and Moravian Producer Co-operatives, Confederation of Industry and UniCredit Bank. The estimates of the European Commission and of the International Monetary Funds are also part of the survey.