PRAGUE, Nov. 6 (Xinhua) -- Although the Czech Republic's gross domestic product (GDP) fell by 0.1 percent last year, it is expected to grow by 1.1 percent this year, the Ministry of Finance said on Wednesday.
The ministry attributed the 2024 growth mainly to the increase in household consumption. "The external trade balance is also expected to provide a significant boost to the economy," it said in a statement.
In its latest Macroeconomic Forecast, the ministry also anticipates the GDP to grow 2.5 percent next year, thanks to stronger consumption and investment and more favorable economic developments abroad. The growth outlook is, however, lower than its August forecast of 2.7 percent.
Commenting on the forecast, Finance Minister Zbynek Stanjura said it confirms "the positive development of the Czech economy," suggesting a "return to a longer-term growth trend."
However, the ministry also warned that economic activity in some sectors may be dampened by renewed problems in supply chains, for example in the context of the situation in the Middle East.
According to a preliminary estimate from the Czech Statistical Office, GDP increased by 0.3 percent quarter-on-quarter in the third quarter this year, and up by 1.3 percent year-on-year.
