Final consumption expenditure rose by 0.3 percent quarter-on-quarter and by 2.7 percent year-on-year. Household expenditure increased by 0.3 percent quarter-on-quarter and by three percent year-on-year. "Final consumption expenditure by government institutions rose by 0.1 percent quarter-on-quarter and by two percent year-on-year," the CSO said.

Year-on-year economic growth was also supported by gross capital formation and a foreign trade surplus. Gross fixed capital formation rose by 0.4 percent quarter-on-quarter and 1.7 percent year-on-year. "Year-on-year growth was recorded mainly in investments in dwellings and other buildings and structures, while a decline occurred mainly in investments in transport equipment," the CSO pointed out. The surplus in foreign trade in goods and services at current prices increased year-on-year by CZK 10.1 billion to CZK 128.3 billion i.e. 412 milion EUR to to 5,24 bilion EUR.

A growing Czech economy also strengthens outward investment capacity. Czech companies entering India are more willing to invest in local partnerships, distribution networks, joint ventures, or after-sales infrastructure. This deepens trade ties and shifts the relationship from transactional exports to long-term industrial cooperation.

Ultimately, stronger Czech economic performance fuels exports to India, while successful engagement with India contributes back to Czech growth through higher revenues, innovation feedback, and global competitiveness. As both economies continue to grow, bilateral trade is likely to become broader, deeper, and more strategic.

Source: www.e15.cz