Czech central bank holds 2015 budget gap and raises overall debt forecast

PRAGUE: The Czech central bank on Friday lowered its forecast for the 2016 public sector deficit to 0.5 percent of gross domestic product (GDP) from an earlier estimate of 0.6 percent.

It also cut its outlook for the 2017 deficit to 0.0 percent from a previous forecast of 0.1 percent.

The bank estimated the fiscal gap at 1.3 percent in 2015 and increased its expectation for 2015 public debt to 41.2 percent, from 40.9 percent of GDP.

The bank raised its expectation for 2016 public debt to 39.7 percent of GDP from a previous 39.5 percent.

In 2017 the central bank assumes the debt level should drop 38.4 percent of GDP, compared to 38.1 percent seen in last November outlook.