Open AccessCzech economy in 1999: struggling for revival
Author(s) -
Kamil Janáček,
Martin Čihák,
Marie Frýdmanová,
Tomáš Holub,
Eva Zamrazilová
Publication year - 1999
Publication title -
prague economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.233
H-Index - 17
eISSN - 2336-730X
pISSN - 1210-0455
DOI - 10.18267/j.pep.42
Subject(s) - economics , recession , consolidation (business) , current account , czech , aggregate demand , economic recovery , great depression , great recession , monetary economics , macroeconomics , economic policy , keynesian economics , monetary policy , exchange rate , political science , linguistics , philosophy , law , accounting
Sluggish growth of GDP in 1997 was replaced by a decline of roughly 2 % in 1998. The main factor of the recession was a depression of almost all the components of domestic demand, mostly as a consequence of 1997 restrictive policy measures. One of the few positive developments was consolidation of the current account. While the external imbalance had been the most pressing problem in 1996 and 1997, the revival of economic growth represents macroeconomic priority for 1999 and for 2000 probably as well. Slight recovery of domestic demand and GDP cannot be expected before the second half of 1999. At the same time, the deficit of consolidated budgets, which is likely to exceed the Maastricht criterion in 1999, can represent a new threat for macroeconomic stability.