IDEA has issued a new macroeconomic prediction for the Czech Republic. The forecast is optimistic. Not only did the Czech economy grow the fastest among European Union members in the fourth quarter of 2013, but it is also believed to grow by over 2 % in the year of 2014. However, this prediction holds as long as the Ukrainian crisis does not lead to large economic shocks.  Please find a short summary in the following text:

The Czech economy grew in the second half of 2013 mostly thanks to its exports ( +1.9% during the six months, in 2005 prices), thanks  to a growing consumer demand (+0.5%), and to the government expenditure (+2.4%). There was also an increase in investment in the last quarter of 2013.  The expectation of the Eurozone recovery, growth in consumer demand and government expenditure should all lead to positive growth of the whole economy in 2014.

Having analyzed the relationships between the Czech Republic and the Russian Federation and Ukraine, the study argues that even a large disruption in these relationships is not expected to lead to catastrophic consequences for the Czech Republic. Nonetheless, the economy’s growth will be slowed down by the anticipated sanctions.