The Czech Republic is bracing for rising inflation and slowing economic growth as the US‑Israeli war against Iran disrupts global markets. Economists warn that if the conflict persists, Czechia’s growth could fall to 1.5% after expanding 2.1% year‑on‑year in the first quarter. Consumer price inflation is projected to accelerate to at least 3% from the current 2%. Rising petrol and diesel prices, despite caps, have already forced firms to cut back on investment. Analysts also point to renewed weakness in Germany’s economy, a critical partner for Czech industry, as a further risk. The outlook underscores how external shocks are straining Central Europe’s economic stability.
Source: Newstimehub
