IMF raises outlook for Czech economy, advises growth-friendly fiscal plan

PRAGUE, June 30 Mon Jun 30, 2014 9:41am EDT

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PRAGUE, June 30 (Reuters) - The International Monetary Fund raised its growth outlook for the Czech Republic on Monday and said the government should set a medium-term fiscal strategy that is growth-friendly.

The Czech economy, which is recovering from a record 18-month recession that ended a year ago, should grow by 2.5 percent in 2014, faster than the IMF's forecast of 1.9 percent seen in an April report, and in line with the central bank's outlook.

At the end of a regular mission to the central European country, the IMF also said it recommended the central bank maintain supportive monetary conditions until inflation expectations become well anchored around the bank's target of 2 percent. (Reporting by Robert Muller, writing by Jason Hovet)