Figure 2: Real GDP Growth & Unemployment Rate (%)
The Czech economy continues to demonstrate growth,In May 2025, the Czech National Bank lowered the two- week repo rate (2W repo rate) by 0.25 pp to 3.5%. The driver. According to a preliminary estimate of the CzechLombard and discount rates also recorded a 0.25 pp decrease to 4.5% and 2.5%. Since then, there have been Statistical Office (CsO), the gross domestic product (GDP) increased by 0.5%, q-0-q, in the Q4 2025. In the increased by 7.1% compared to the corresponding period of the previous year. In real terms it increased consumption expenditure and foreign demand. by 4.5%. In Q2 2025 the median wage was CZK 42,901. The CZK/EUR Exchange rate stands at around 24.25 at 2.5% meaning a 0.1% increase compared to 2024. CZK/EUR as of December 2025, representing 3.7% y-0-y strengthening. The Ministry of Finance expects the According to CBRE House View, GDP growth is Czech crown to further strengthen to around 24,1 expected to decrease to around 1.9% in 2026. in the upcoming year, mainly due to geopolitical instability and the slowing growth in household consumption. In Q3 2025, the central government balance was in a deficit of CZK 20.8 bn, improving by CZK 5.2 bn y-0-y. a deficit of CZK 5.6 bn and the social security funds sub-sector ended up with a surplus of CZK 1.0 bn. Retail sales continued in growth and increased by 4.6% y-0-y in November 2025. Industrial production increased in real terms by 5.7%, y-o-y. The construction production increased by 6.1%, y-o-y, in November 2025.