Czech gross domestic product (GDP) grew by 1.9% year-on-year (y/y) and by 0.4% quarter-on-quarter (q/q) in the second quarter of this year, according to the refined estimate released by the Czech Statistical Office (CZSO).

This is slightly down on the 2% y/y growth CZSO estimated in July, and a slowdown on the 2.2% y/y growth registered in Q1. Domestic consumption remains the main driver of GDP growth, while local market analysts also mentioned the growth in investments.

“On the demand side, the following were the main factors of the q/q growth of GDP in the Q2 of 2026: final consumption expenditure of households, the gross fixed capital formation, and external demand,” commented CZSO’s Vladimír Kermiet, adding that “a change in inventories had a negative influence“.  

The gross value added (GVA) rose by 1.8% y/y and by 0.4% q/q CZSO reported, where the y/y growth was contributed to by industry, economic activities of trade, transportation, accommodation and food service activities, and information and communication.

Besides the final consumption of households, final consumption expenditure of the general government, the gross capital formation, and international trade balance had a positive influence, while a change in inventories had a negative influence.

The gross fixed capital formation rose by 7.1% y/y while the international trade balance decreased by CZK20.5bn to CZK99bn, CZSO also noted.

Head economist of Banka Creditas Petr Dufek praised to the Czech Press Agency the “strong growth of investments, which is driven by construction of infrastructure, commercial real estate and apartments,” noting that companies are revamping their vehicles as well.

The figures came shortly after The Czech Ministry of Finance lowered its forecast for GDP growth to 1.9% y/y this year before accelerating to 2.4% in 2027, according to its August macroeconomic prognosis released on August 20.

This is down from the 2.1% previously projected growth for this year and comes amid uncertainties in connection with the war in the Middle East and unstable situation in the region.

Earlier, Czech Banking Association (CBA) affirmed its projection of 2% y/y GDP growth this year, before accelerating to 2.3% in 2027, according to its latest forecast.

“The August forecast does not alter the overall pace of economic growth, but it does significantly change its structure,” CBA’s head economist Jaromír Šindel commented. He added that “consumption, investment, lending and wages are stronger, whilst this year’s overall inflation is being held in check mainly by favourable trends in food prices".