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Czech Economy Shows Growth of 1% in 2024
The Czech economy demonstrated resilience last year with a 1% growth, according to preliminary estimates from the Czech Statistical Office (ČSÚ). The fourth quarter proved particularly promising, with GDP rising 1.6% year-over-year and 0.5% quarter-over-quarter, driven primarily by increased household consumption.
Higher household spending and government expenditure were the main drivers behind the annual GDP growth, though capital formation had a dampening effect. The trade sector, transportation, accommodation, and food services contributed significantly to value addition, while industrial production continued its downward trend.
Petr Dufek, Chief Economist at Creditas Bank, notes that while these results are commendable compared to Germany’s recent performance, they fall short of pre-COVID growth rates. He points to limitations in the export-based economic model, further challenged by high energy costs and increasing bureaucracy.
Looking ahead to 2025, the Ministry of Finance projects an acceleration in economic growth to 2.3%. However, Dufek suggests that achieving even a 2% growth rate would be a positive outcome, citing potential risks from German economic developments and possible U.S. tariffs if EU negotiations falter.
Source: CzechDaily
Prepared by the team of foreign offices CzechTrade Osaka and Tokyo
