PRAGUE, Dec 27 (Reuters) - The Czech economy will grow by no less than 2 percent next year, although the gathering intensity of the economic crisis may cause that forecast to change, Finance Minister Miroslav Kalousek said on Saturday.
Once thought mostly resistant to the crisis, the Czechs and their central and Eastern European neighbours have been slashing growth forecasts since October and some economists say the whole region may follow western Europe into recession.
Kalousek said the intense economic turbulence made it extremely hard to make economic predictions.
"Half a year ago, none of us could have estimated the extent of the crisis and, to say it straight, we cannot estimate even today. Economic turbulence is exceptional and prognoses are changing month to month," he told daily Mlada Fronta Dnes in an interview.
"I still believe economic growth will not fall below 2 percent. But we'll see. Unemployment should not rise more than 1 percent. Inflation will definitely be below 3 percent. Salary growth will slow, of course."
His estimate was roughly in line with comments made at the start of December, when he said 2 to 3 percent growth was possible. Czech inflation was 4.4 percent in November. A month earlier, unemployment was 5.2 percent.
Kalousek also said he was not in favour of state support for private industry, such as car producers. The backbone of Czech industry, the sector has been forced to slash production due to a collapse in demand for new cars.
He added he was still in the minority of European finance ministers opposed to fuelling growth with a government stimulus packages and it was important to watch spending.
"That which we are actually witnessing in Europe, the large public expenses, are made on credit. Those (governments) are softening the effects of the current crisis at the expense of their children and grandchildren," he said. (Reporting by Michael Winfrey; Editing by Ron Askew)