Czech Republic emerged as the best-performing economy in Central and Eastern Europe in 2025, outperforming several Western European countries, according to The Economist. Economic growth reached around 2.8% year on year, supported by solid employment, easing inflation pressures, and a strong equity market, with share prices on the Prague Stock Exchange rising by more than 40%. While the ranking highlights Czechia’s resilience and investor confidence, the outlook remains tempered by structural challenges such as high energy costs, a manufacturing-heavy economy, labor shortages, and heavy dependence on Germany, its largest trading partner, whose economic slowdown could weigh on future growth.

Source: expats.cz