The Czech economy is expected to grow by 2.5% this year, according to the CBA's forecasting panel, with a slight slowdown of a more technical nature to 2.2% next year. The improved outlook for this year and next reflects the resilience of the Czech economy, supported by higher wage growth, government investment, de-escalation of customs disputes and, to some extent, the expected easing of fiscal policy. The recovery in investment activity will also be positive next year, also thanks to the return of stronger corporate lending activity in recent months.