The Czech Republic’s economic growth slowed to 4.2 percent in the third quarter of 2008, which is down from the previous estimate of 4.7 percent. It, like many economies across Europe, is slumping. Slowing demand for Czech products as well as a strong currency helped to slow growth in the economy, according to the Czech Statistical Bureau.
“This was due to a combination of external and domestic factors,” the Czech Statistical Bureau said. “The external factors were mainly the cooling of economies of the main trading partners and the resulting sales complications of export-oriented producers.”
While the Czech economy has slowed, it is still relatively strong when compared to many in Europe and it has avoided the problems in the financial sector that has hit the United States and the UK.
Growth in 2007 was 5.7 percent, but the Czech central bank is forecasting just 2.9 percent growth for all of 2009. The bank has cut interest rates to help the economy, and its main rate is now at 2.75 percent. It is expected to cut rates even further at its next meeting in December.
