Published:31.01.2025
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The Czech economy grew by one percent last year

The growth in added value was supported most by the trade, transport, accommodation and catering sector, while other services also performed well

The Czech economy grew by one percent last year, while it fell by a tenth of a percent in 2023, according to a preliminary estimate published by the Czech Statistical Office.

In the final quarter of last year, gross domestic product increased by 1.6 percent year-on-year, half a percent higher than in the previous quarter.

According to the CZSO, the full-year economic growth was supported by higher spending on final consumption by households and government institutions. On the contrary, gross capital formation had a negative impact.

“The development of gross value added was supported mainly by the group of trade, transport, accommodation and catering industries. The decline occurred in the manufacturing industry,” the statistical office said.

In the last quarter of last year, GDP grew by half a percent quarter-on-quarter. “Growth was supported by domestic demand, especially higher spending on final consumption by households. Foreign demand was falling,” stated Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office.

GDP grew by 1.6 percent year-on-year in the fourth quarter, according to the Czech Statistical Office, the growth was mainly contributed by household final consumption expenditure and gross capital formation. The foreign trade balance had a negative impact.

The recovery of the Czech economy is expected to continue this year. The Ministry of Finance expects GDP to grow by 2.3 percent this year, while analysts also expect roughly two percent growth.

Since the establishment of the Czech Republic in 1993, the domestic economy has mostly grown throughout the year, declining a total of six times.

GDP decreased during the economic crisis of 1997 and 1998, during the global financial crisis of 2009, in 2012, during the Covid pandemic in 2020, and most recently the year before last.

Source: Forbes
Prepared by the team of foreign office CzechTrade South Korea (Seoul)