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The economy of the Czech Republic is getting its support from the domestic demand, along with the aid of fiscal policy that is looser. On the other hand, it was still unable to reach the output level that it was projected to achieve. The said information were relayed on Monday by the governor of the central bank of Czech.
According to Governor Miroslav Singer, they were able to get out of the pit of fiscal brake and in simpler terms, the budget of the central state is not relevantly in favor of growth. However, there is no brake that exists anymore and they are feeling grateful for such. These were the thoughts of Governor Singer when he was interviewed by the Hospodarske Noviny.
The cabinet of Czech has plans of running a budget deficit next year that is bigger worth 100B Czech crowns or 4.65 billion dollars, with the aim of boosting the economy through raising pensions, investments and public wages.
The economy of Czech became 2.5 percent higher on a yearly basis during the year’s second quarter, which is slower than what they thought previously, but got accelerated every quarter due to the increasing household consumption.
According to Singer, too, our economy’s current economy is still lagging behind the potential that it was seen to have. Using the perspective of a practical individual, it is no longer a problem that their monetary policy should be considering.
Interventions have also been launched by the central bank, with the purpose of weakening the crown to turn away from deflation last November. It mentioned that it will stop the crown from reaching more or less 27 to the value that the euro has today. Also, in September, it reiterated the commitment it has to maintain a weak crown until the year 2016.
