The Confederation of Industry of the Czech Republic has released its economic forecast, projecting a 2.7% real GDP growth for 2025, an improvement compared to the expected 1.2% growth in 2024. Despite the positive outlook, Martin Jahn, Vice President of the Confederation, emphasizes that these figures should not lead to complacency, as the Czech economy continues to face structural issues. High energy costs, a shortage of skilled labor, and growing demands for innovation remain key challenges for businesses.

To sustain economic growth, the Confederation has called on the government to implement strategic measures, including ensuring stable and competitive energy prices, simplifying migration processes to attract skilled foreign workers, and increasing funding for applied research and development. Furthermore, they stress the need for reducing bureaucratic obstacles and boosting housing development, which could enhance labor mobility and overall economic activity. While the forecast offers a cautiously optimistic outlook, addressing these issues is essential for achieving long-term stability and growth in the Czech economy.

Source: E15

Prepared by: Team CzechTrade Israel