Czech Republic

The economy has been doing very well, with high growth and the lowest unemployment rate in the EU. So far, there are no major macroeconomic imbalances: wages have been increasing rapidly, but inflation remains close to the target; credit growth is broadly in line with the growth of nominal GDP; the banking system is well capitalized and funded; fiscal policy has been conservative; and the economy runs a small surplus with the rest of the world. But the economy is already hitting the limits of supply, and the labor force is expected to continue to shrink while the population ages.