According to a report released on May 30 by the Czech National Bank, the country’s economy grew 2.2% year-on-year in the first quarter of 2025—slightly above the forecast of 2.1%. Stronger-than-expected performance in investments and exports contributed to the result, although household consumption rose only 2.5%, below the bank’s projection of 3.3%.

While investment activity declined on an annual basis, it increased on a quarterly level, and exports held up better than anticipated. However, the central bank cautioned that these positive developments may have been partly driven by one-off stockpiling in anticipation of rising trade barriers.

The bank noted that both investments and exports would likely be the first segments impacted if significant U.S. tariffs are introduced. Despite these risks, it expects Czech full-year GDP growth to reach around 2%, supported by continued strength in domestic consumption.

For American businesses and investors operating in the Czech Republic or relying on Czech suppliers, the report highlights potential volatility tied to U.S. trade policy and its ripple effects on Central European economies.

Source: www.irozhlas.cz

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