The growth was driven primarily by household consumption and inventory changes, while investment activity and a lower foreign trade surplus weighed slightly on overall performance.

Economists expect the Czech economy to grow by more than 2% for the full year, up from 1% in 2024. The Ministry of Finance projects 2.1% growth, while the Czech National Bank remains more optimistic at 2.6%. Rising real wages have played a key role in boosting domestic demand. In the second quarter, real income from employment increased by 4.1% year-on-year, and household consumption per capita rose by 2.9%. The average monthly wage reached CZK 52,560 (about USD 2,200).

While the household savings rate declined slightly year-on-year to 18.4%, it remains above pre-pandemic levels, suggesting continued financial stability among Czech consumers.

Prepared by the team of the CzechTrade office in San Francisco.
Source: Czech Statistical Office; Forbes.