The European Commission expects Czech GDP growth at 3.5% this year, at 3.8% next year and at 4.2% in 2003. The Commission finds the country's economic development optimistic because it does not expect FDI to dry out, not even as a result of economic slowdown in the EU. However, the Commission is afraid that in the long run the open and export-orientated Czech economy may not survive in a deteriorating international environment. A long and marked slowdown combined with the state of the stage budget is a cause for fear. A drop of foreign investments, simultaneous fall of export demand and ongoing hunger for imports could impede Czech economic growth.
The European Commission also dealt with the EU economy. GDP forecast were lowered to 1.7% this year (previously: 2.8%), 1.4% in 2002 (2.9%) and 2.9% in 2003. Inflation forecasts did not change so dramatically. The Commission assumes inflation to be at 2.5% in 2001 (previously: 2.1%), 1.7% in 2002 (1.8%) and 1.7 in 2003.
Czech Deputy Foreign Minister and State Secretary for European affairs Pavel Telicka said in yesterday that the EU should choose an individual approach to candidates for European Union membership according to the level of their preparedness for the entry. He added that insufficient preparedness of some candidate countries should not postpone the entry of prepared candidates.
The government increased a minimum wage by 14% from CZK 5.000 to CZK 5.700. Higher minimum wage should increase a willingness to seek a job for unemployed people who often prefer to receive unemployment and social benefits.