In 2025, GDP grew by approximately 2.5 percent, nearly doubling the pace of the previous year. This recovery was largely fuelled by household consumption, underpinned by real wage growth and easing inflation. Improved purchasing power and renewed consumer confidence translated into higher spending throughout the year, making domestic demand the main engine of economic growth.

Public expenditure and investment also contributed positively, particularly in infrastructure and construction, while private investment showed gradual signs of recovery.

Foreign trade shows mixed contribution

Foreign trade played a more nuanced role in overall economic performance. Exports increased by 2.6 percent, while imports grew slightly faster at 2.8 percent, reflecting strong domestic demand and limiting the net contribution of external trade. Nevertheless, the trade balance remained in surplus at CZK 216.5 billion.

According to the Director General of CzechTrade, Rudolf Klepáček, a strong end to the year significantly contributed to the overall positive export performance in 2025, with March and October ranking among the strongest months in terms of export value.

Growing importance of non-EU markets

From a territorial perspective, exports to EU countries increased by 2 percent year on year, while exports to non-EU markets grew by 4.4 percent, pointing to a gradual shift in growth dynamics beyond Europe. Among the Czech Republic’s five main export partners, exports to France recorded the highest growth at 6.2 percent, while exports to Germany and Slovakia both rose by 2.3 percent.

Among countries where CzechTrade has a presence, the fastest export growth was recorded in markets such as the Philippines, Morocco, South Korea, Egypt and Canada, although each of these still accounts for less than 0.5 percent of total Czech exports.

Overall, the Czech economy demonstrated resilience and a solid return to growth in 2025. While the outlook remains moderately positive, future performance may continue to be influenced by external risks, including global trade tensions and weaker demand in major partner economies.

Source: Bloomberg, PragueDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo