The Czech economy’s recovery from recession may be hobbled as the government’s widening budget deficit drives up public debt and threatens to prompt higher borrowing costs, the Czech Banking Association said. The country’s borrowing needs will rise 4% in 2010 to CZK 280 billion, the Finance Ministry said Thursday, after the budget shortfall this year rises to an estimated 6.6% of GDP, more than double the European Union’s 3% limit.
