The OECD forecasts Czech economic growth to accelerate to 2.1% this year, up from 1% in 2024, with further expansion to 2.5% in 2026. Inflation is expected to ease, averaging 2.3% this year before reaching the Czech National Bank’s 2% target in 2026. The fiscal deficit is also set to improve, decreasing from 2.8% last year to 2.6% in 2025 and 1.9% by 2026.

Presenting the report in Prague, Prime Minister Petr Fiala and OECD Secretary-General Mathias Cormann highlighted the importance of fiscal discipline to sustain economic stability. Cormann stressed that responsible budgeting will be crucial, particularly as the country faces rising expenditures related to an aging population and increased defense and security needs.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo