Following an estimated stagnation in 2023, economic activity in Czechia is expected to only gradually pick up pace reaching 1.4% in 2024 and 3.0% in 2025. The decline in inflation from 12.2% in 2023 to 3.2% in 2024 is likely to help households gain confidence for increased spending, and triggering also an acceleration in investments in 2025. Conversely, the phase-out of measures to mitigate the impact of high energy prices and the government’s public finance consolidation package are set to lead to a decline in the budget deficit and provide a negative momentum to GDP growth.

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