Finance Minister Zbyněk Stanjura presented the revised forecast, noting that U.S. tariffs on EU imports will slow Czech growth by 0.3 percentage points this year and 0.4 next year. In 2026, stimulus measures in Germany could boost Czech growth by up to 0.3 percentage points due to the close economic ties between the two countries.

Household consumption is expected to rise 3 percent this year and 2.9 percent next year, while government spending will grow by 1.9 percent and 1.4 percent, respectively. Investment activity, stagnant this year, could contribute to growth in 2026, increasing by 2.9 percent.

Wages are projected to grow nominally by 6.6 percent this year and 5.4 percent next year, with stable inflation of around 2.4 percent translating into real wage growth. Minister Stanjura highlighted that stable inflation and rising real wages are driving household spending, providing a solid foundation for sustainable economic development.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo