A key driver behind this growth was household consumption, which rose by 2.5%, reflecting increased consumer confidence and purchasing power. Government spending also contributed, increasing 1.9% year-on-year, while a notable buildup in inventories—valued at 13.6 billion CZK—further supported the rebound.

Although government consumption slightly declined on a quarterly basis, household spending and investment activity played a major role in the economic acceleration, said Vladimír Kermiet of the Czech Statistical Office.

The labor market showed positive momentum as well. Wages increased by 7%, and both quarterly and annual employment figures improved, signaling broader economic recovery. In terms of sectors, gross value added rose by 2.5%, with significant gains in industry and service areas such as trade, transport, and hospitality.

These figures highlight a broad-based recovery and suggest that the Czech economy is regaining stability and growth potential after several challenging years.

With continued domestic demand and sectoral strength, the outlook for the remainder of 2025 appears optimistic.

CzechTrade Thailand

Source: Czech Daily