Economic Growth in Czech Republic
Czech republic's economy recorded an average growth rate of 2.2% in the decade to 2024, compared to the 1.9% average for Central & Eastern Europe. In 2024, real GDP growth was 1.1%. For more GDP information, visit our dedicated page.
Czech Republic GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Czech Republic from 2024 to 2023.
Source: Macrobond.
Czech Republic GDP Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Economic Growth (Real GDP, ann. var. %) | -5.3 | 4.0 | 2.9 | 0.2 | 1.1 |
GDP (USD bn) | 251 | 291 | 302 | 345 | 347 |
GDP (EUR bn) | 220 | 246 | 287 | 319 | 321 |
GDP (CZK bn) | 5,828 | 6,308 | 7,050 | 7,660 | 8,057 |
Economic Growth (Nominal GDP, ann. var. %) | -1.0 | 8.2 | 11.8 | 8.6 | 5.2 |
GDP growth decelerates but remains solid in Q2
GDP growth revised upward: GDP growth declined to 0.5% on a seasonally and calendar-adjusted quarter-on-quarter basis in the second quarter (Q1: +0.7% qoq s.a.). However, there is still space for optimism as the reading was above the average of the last two years on the same basis and marked the seventh consecutive expansion. Moreover, the figure was revised up from an initial estimate of just 0.3% growth. On a seasonally and calendar-adjusted annual basis, GDP growth accelerated to 2.6% in Q2 from 2.4% in the previous quarter, the best result since Q2 2022.
Net trade drags on GDP growth, but domestic demand keeps momentum solid: The sequential slowdown was primarily driven by weakness in the external sector. Export growth fell sharply, from 3.0% in Q1 to just 0.3% in Q2, likely weighed down by the prolonged slump in the German industrial sector and rising global trade tensions. Imports also lost momentum, growing 1.5% in Q2 from 2.5% in Q1. However, the sharper export slowdown meant net trade weighed on headline growth. Meanwhile, the domestic sector was the main engine of economic growth. Private consumption accelerated to 1.0% in Q2 (Q1: +0.4% qoq s.a.) as households benefited from softer price pressures and a stronger koruna compared to the prior quarter. Moreover, government consumption rebounded 1.2% in Q2 (Q1: -0.3% qoq s.a.), while fixed investment rose at a slightly faster pace of 0.5% (Q1: +0.4% qoq s.a.).
Economy to gain steam in 2025: Our panel expects sequential GDP growth to hover near Q2’s pace in the coming quarters. Still, in 2025 as a whole, economic momentum should pick up and roughly double from 2024’s rate. Lower interest rates should fuel a rebound in fixed investment, while stronger EU demand will likely buttress exports. Moreover, consumer spending should accelerate on the back of a still-tight labor market. A weaker-than-expected German economy—the top trading partner—is a downside risk.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Czech GDP projections for the next ten years from a panel of 42 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Czech GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Czech GDP projections.
Want to get access to the full dataset of Czech GDP forecasts? Send an email to info@focus-economics.com.
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