Economic activity in the Czech Republic continues to be supported by relaxed monetary conditions, growth of foreign demand and low oil prices. This is based on a report about inflation published by the Czech National Bank (ČNB). In 2016 GDP growth will slow down due to a 2.4% drop in government investments. In 2017 and 2018 the growth of the economy will accelerate to 3.0 %. As a result of continued economic growth, the situation on the labor market will continue to improve, along with an acceleration of salary dynamics. Overall and monetary policy inflation will increase according to the forecast and will slightly outperform the 2% target at the horizon of monetary policy.
