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Czech economy still risks W-shaped recovery
( 20 / October / 2009 )
Risks of a W-shaped recovery in the Czech economy persist and the worst is still ahead for the corporate sector and the labour market, central bank Vice-Governor Miroslav Singer said on Tuesday.
Czech gross domestic product shrank at a record annual rate of 5.5 percent in the second quarter, although it edged 0.1 percent up from the previous three months.
The central bank forecasts 0.3 percent growth for 2010, but Governor Zdenek Tuma said the forecast may be cut in a quarterly update due next month.
'Significant uncertainties and risks of a W-shaped recovery persist,' Singer said in his presentation.
The bank forecasts a recovery in GDP growth in late 2009 but sees another slowdown in mid-2010.
He reiterated a point made by Vice-Governor Mojmir Hampl in an interview with Reuters last month in which he also said the recovery would be interrupted by a second dip, although he said this would be less deep than the first one.
Source: Reuters