Czech Republic; 2006 Article IV Consultation: Staff Report and Public Information Notice on the Executive Board Discussion
This 2006 Article IV Consultation highlights that economic performance of the Czech Republic strengthened during 2005–06, supported by the expanding capacity of the export-oriented automotive sector and a cyclical recovery in the European Union. The momentum of growth has been underpinned by strong productivity gains, leading to a surge in exports and further investment in the tradable goods sector. The koruna strengthened, helping to keep inflation down. Growth is projected to remain robust in 2007–08, although its momentum will slow as the effects of the recent export capacity expansion unwind.
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