The slowdown in the long-term potential growth of the Czech economy

Starting with the Summer 2024 MPR, the values of long-term potential output growth and real equilibrium exchange rate appreciation of the koruna in the forecast are lower. The analysis describes in detail the reasons for the changes. The identification of fundamental structural breaks in the Czech economy indicates that certain changes occurred in the period around 2016 that reduced the rate of long-term potential growth. Published as part of the Summer 2024 Monetary Policy Report (or MPR). Authors: Barbara Livorová, Ondřej Michálek, Karel Musil, Adam Ruschka and Matěj Šarboch