Czechia Outlook | Growth in the Czech economy continues

Economic development in the Czech economy has remained roughly stable for some time. The economy is undergoing gradual recovery, with GDP growth around 2%, primarily driven by household demand. Conversely, weak developments in Germany and global economic uncertainty, including US tariffs, exert downward pressure. A similar trend is expected next year. The labor market situation remains favorable, with continued low unemployment and nominal wage growth between 6% and 7%. Overall inflation is currently slightly above 2%, anchored within the tolerance band, mainly driven by rising food and services prices. A similar trend is anticipated in the coming quarters.