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European slump set to harm Czech growth prospects

The tumultuous past week in the financial markets has fuelled concerns about the pace of the global, and especially the European, recovery. The Czech economy will be hit harder than most by a slowdown in the euro-zone’s core and we think it will struggle to achieve GDP growth above 2% in 2012 and 2013. This is much lower than pre-crisis growth rates of around 6% and well below the consensus forecast.

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