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Strong fiscal profile bolsters Czech Republic’s ability to support the economy

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A more expansionary fiscal policy will see the Czech Republic’s budget surplus narrow over the next two years. From 0.9% of GDP in 2018 we at Fitch Solutions forecast smaller surpluses of 0.5% and 0.3% in 2019 and 2020, respectively. Public debt will thus continue to fall from already low levels, providing the government with ample fiscal space to support the economy if global macroeconomic conditions were to deteriorate.

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