The Czech government won’t meet its target of cutting the fiscal deficit to less than the European Union’s limit next year, according to International Monetary Fund forecasts published today.
The Washington-based lender forecast the Czech shortfall at 3.4 percent of economic output, compared with the government’s goal of 2.9 percent, according to an update of the IMF’s World Economic Outlook, published today. The Cabinet of Prime Minister Petr Necas will meet its deficit goal of 3.5 percent of GDP this year, the fund said.
The 20-month-old government plans to narrow the public finance deficit, the fiscal yardstick for assessing an EU member’s readiness to adopt the euro, to 1.9 percent of gross domestic product in 2014, while the IMF sees the gap at 3.2 percent that year. The condition for entering the euro region is a deficit no larger than 3 percent.
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