According to preliminary data from the Czech Statistical Office (ČSÚ), the Czech economy grew by 0.4 % year-on-year in the second quarter of this year, primarily driven by household consumption. The gross domestic product (GDP) increased by 0.3 % quarter. This growth is a positive sign amid challenging global economic conditions. 

Vladimír Kermiet, head of the National Accounts Department at ČSÚ, noted that year-on-year economic growth was mainly supported by household final consumption expenditures. Government final consumption expenditures also increased, and foreign demand had a positive impact. However, changes in inventory levels had a negative effect. The data highlights the significant role of domestic spending in driving economic growth.

In summary, while the Czech economy grew in the second quarter, underlying challenges must be addressed. While the strong performance of household consumption and certain service sectors is encouraging, the industrial sector’s decline and weak foreign demand pose significant risks to long-term economic stability.

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