FX.co ★ Czech Republic GDP Growth Eases in Q2

In the second quarter of 2025, the Czech Republic's gross domestic product experienced a quarter-on-quarter increase of 0.5%, according to the latest data. This growth rate is a deceleration from the 0.7% rise observed in the prior quarter; however, it surpasses initial forecasts of a 0.2% expansion. This period marks the most modest growth in the Czech economy since the second quarter of 2024, primarily due to a decline in fixed investments, which grew at 0.5% compared to 0.4% in the first quarter. Additionally, net trade had a negative impact on GDP, with export growth of 0.3% falling short of the 3% seen previously, while imports increased by 1.5%, up from 2.5%. Notably, government expenditure rebounded significantly with a 2.1% increase, recovering from a -0.8% decline. Private consumption also saw improvement, rising by 1.1% compared to 0.4% in the previous quarter. On an annual basis, the economy expanded by 2.6% in the second quarter, surpassing early estimates of a 2.4% rise. This represents the swiftest growth rate since the second quarter of 2022, accelerating from a 2.4% increase in the prior period.