The Czech industrial sector has shown little growth since 2018, hovering around zero, and is currently at levels similar to spring 2017. Analysts attribute this stagnation to several factors, including trade tensions with the U.S., fluctuating tariffs, and an uncertain business environment. These issues, compounded by high energy costs and the struggling German economy, have hindered growth prospects.

Despite the overall decline, there were some positive developments. The automotive sector saw a notable drop of 4.8 percent, but the computer and electronics manufacturing sector experienced significant growth, increasing by 13.9 percent year-over-year. Analysts predict that while industrial growth could surpass one percent in 2025, a return to pre-pandemic production levels is unlikely without resolution of trade tensions.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo