Czech gross domestic product increased by 2.6% year-on-year (chart) and by 0.5% quarter-on-quarter in the second quarter of this year following the release of the refined figures by the Czech Statistical Office (CZSO).

“The y/y growth of GDP was supported by higher final consumption expenditure and by a change in inventories,” the CZSO highlighted. Its Director of the National Accounts, Vladimir Kermiet, added in a comment that “the influence of international trade was negative.”

The CZSO previously estimated the GDP growth of 2.4% y/y and just 0.2% q/q, and the refined figures came as a positive surprise to local market analysts who have also improved their overall GDP growth projections for this year.

“For this year, we are expecting the growth of the Czech economy at the level of 2.2%; however, the Q2 GDP data suggest that GDP growth for the whole of 2025 could be even slightly higher,” head economist at Generali Investments CEE, Radomír Jáč, was quoted as saying by the Czech Press Agency (CTK).

UniCredit Bank improved its GDP projection for 2025 by 0.1 percentage point to 2.2%, while other analysts praised the growth in household consumption as the key driver behind economic growth.

“The reason is clear, inflation stays below 3% and nominal wages keep on growing at a solid pace, thanks to which the real purchasing power of Czechs increases,” Raiffeisen Bank anaylst Martin Kron told CTK.   

As bne Intellinews reported earlier in August, the Czech Banking Association (CBA) and the Czech Ministry of Finance each improved their prognosis of economic growth to 2.1%, following the less-than-expected impact of US tariffs on the export-oriented Czech economy.

CBA has revised upwards its projection of the country’s economic growth rate to 2.1% this year and 2% in 2026 after CBA cut the prognosis to 1.7% in May, amid “the negative impact of trade wars and the uncertainty associated with them.”

CZSO refined figures also show that final consumption expenditure increased by 3.1% y/y and 1.1% q/q, while final expenditure of households was up by 3.4% y/y and by 1% q/q. Final expenditure of the general government increased by 2.2% y/y and by 1.2% q/q.    

Gross fixed capital formation dropped by 0.2% y/y and grew by 0.5% q/q. The change of inventories was up by CZK36bn (€1.5bn), which was by CZK27.2bn more y/y.