This upturn followed a period of stagnation in 2023, during which the economy contracted by 0.1%. The growth in 2024 was primarily driven by increased household and government consumption. The balance of foreign trade in goods and services totalled CZK 129.2 billion at current prices, which was CZK 5.1 billion higher than in the same period of the previous year. Exports fell by 1.5 % in real terms compared to the previous quarter and rose by 1.3% compared to the same period last year.

Looking ahead, forecasts suggest an acceleration in economic growth, with GDP expected to increase by 2.4% in 2025 and 2.7% in 2026. This anticipated growth is projected to be driven by household consumption and investment activity.

In summary, while the Czech economy faced challenges in 2024, it managed to achieve modest growth, setting the stage for a more robust recovery in the coming years.

Sources: Radio Prague International, Economy and Finance, Prague Daily, IMF

Author: CzechTrade Belgrade