CBA revises Czech economic outlook downwards for 2012/13


The Czech Banking Association, in its updated forecast, made clear on Wednesday it expected the Czech economy to contract by almost one percent this year, while back in July it forecast a 0.6 percent drop. CBA representatives discussed the downward revision as related largely to a fall in household consumption. The government´s austerity measures and unstable expectations of further development had contributed to the forescast change. The CBA also cut its forecast of GDP development for next year: the association now expects growth of less than 0.5 percent, while in July it estimated one percent growth.