Czechia

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The Czech economy showed notable resilience in the first half of 2025, driven by strong household consumption, as wages rose and inflation eased. Investment and trade remained weak, but most sectors contributed positively to growth. Having just won the election, ANO, led by former Prime Minister Andrej Babiš, has promised increases in welfare spending and tax cuts, and has voiced its opposition to further green measures. This – together with higher defence spending – will likely constrain fiscal policy. Growth is forecast to be 2.2% this year, followed by an acceleration to 2.4% and 2.7% in 2026 and 2027, respectively.
        FORECAST*
Main Economic Indicators202220232024202520262027
Population, 1000 persons106721086410905...
GDP, real change in %2.80.01.22.22.42.7
GDP per capita (EUR at PPP)321503466036440...
Gross industrial production, real change in %2.1-1.3-0.7...
Unemployment rate - LFS, in %, average2.22.62.62.72.82.7
Average gross monthly wages, EUR162517961838...
Consumer prices, % p.a.14.812.02.72.42.21.8
Fiscal balance in % of GDP-3.1-3.7-2.2-1.9-2.3-2.3
Public debt in % of GDP42.542.243.3...
Current account in % of GDP-4.7-0.11.71.81.61.5
FDI inflow, EUR m87291101012048...
Gross external debt in % of GDP67.461.065.3...


Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.

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Monthly Report No. 7-8/2025

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Maciej Grodzicki, Ioannis Gutzianas, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Niko Korpar, Dzmitry Kruk, Sebastian Leitner, Isilda Mara, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Maryna Tverdostup
wiiw Monthly Report No. 7-8, July-August 2025
38 pages including 5 Tables and 3 Figures

Details

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Executive summary

Olga Pindyuk
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. I-VII
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