The Czech Republic's economy recorded its fastest growth since mid-2022, as GDP rose by 2.2% year-on-year in Q1 2025, surpassing initial forecasts. The Czech Statistical Office reported quarter-on-quarter growth of 0.8%.

A major contributor to the rebound was household consumption, which climbed 2.5%, along with a 1.9% increase in government spending and a significant inventory buildup worth 13.6 billion crowns. While government consumption slightly declined on a quarterly basis, household spending and investment drove the growth, according to Vladimir Kermiet of the Czech Statistical Office.

The labor market also strengthened, with wages up 7% and employment rising both quarter-on-quarter and year-on-year. Sector-wise, gross value added increased by 2.5%, with notable growth in industry and service-related sectors like trade, transport, and hospitality.

Source: CzechDaily

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