(PRAGUE) - The Czech public deficit fell last year to 1.58 percent of output from 2.66 percent in 2006, the statistics announced on Tuesday.

Overall public debt as a proportion of national wealth also fell last year to 28.65 percent of gross domestic product from 29.44 percent a year earlier, the office said.

Strong growth of 6.5 percent last year in the Central European economy was the main factor squeezing debt and deficit levels, economists said.

"The position of the Czech public finances last year came closer last year to what you could expect of an economy growing at more than 6.0 percent," commented Unicredit Bank analyst Pavel Sobisek.

The latest figures suggest the Czech Republic could easily meet the debt and deficit criteria to adopt the single European currency, the euro. The Maastricht criteria set a 3.0 percent of GDP ceiling for the public deficit and 60 percent guideline for debt.

The centre-right government has refused so far to set a target date for the switch to the euro. Prime Minister Mirek Topolanek warned in a conference on Tuesday that he was no fan of a hasty euro adoption, suggesting a series of supplementary criteria for measuring when the time might be ripe for the changeover.

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