FX.co ★ Czechia Q2 GDP Growth Slows to Weakest in a Year

In the second quarter of 2025, the Czech Republic's gross domestic product (GDP) experienced a modest increase of 0.5% compared to the previous quarter, down from a growth rate of 0.7% in the first quarter. This slower growth pace, the lowest in a year, aligns with the second estimate figures. The economy faced challenges, primarily due to weaker net trade dynamics. While imports rose by 1.5%—a slowdown from 2.5% in Q1—exports lagged, showing only a 0.3% increase compared to a 3% jump in the previous period. This trade imbalance exerted a negative impact on the overall economic activity. Nonetheless, domestic demand offered some relief: household consumption saw a noteworthy rise to 1% from the previous quarter's 0.4%. Government spending showed a significant recovery, bouncing back to 1.6% growth from a contraction of 0.2%, and fixed investment growth quickened to 1.6%, up from 0.2%. On an annual basis, GDP expanded by 2.6% in Q2, consistent with earlier projections and improving on the prior quarter's 2.4%, marking the most robust yearly growth rate since the second quarter of 2022.