Moody’s affirms the Czech Republic’s sixth consecutive A1 rating
23 Jul. 2013 | CzechInvest | Despite the Czech Republic’s unstable political situation, the country’s economy ranks among the least problematic in Europe. Moody’s, a rating agency, has recognised the country’s stable tax system, reduction of the national debt and the good situation of Czech banks.
According to Moody’s long-term forecast, the Czech Republic is not facing bankruptcy or any severe financial problems. The national debt is low in comparison with that of other European Union member states – last year the Czech Republic recorded a deficit of 4.4% of GDP. However, that result included the effect of a one-off settlement with churches and similar incidental expenditures, without which the deficit would have amounted to only 2.5% of GDP. The Czech economy’s substantial independence from foreign markets was also one of the factors that influenced Moody’s evaluation. In comparison with other European countries, economic growth declined at a slower rate, the banking system is stable and Czech household debt is below average.
The detailed report from Moody’s is available here.
