Economic expansion was supported by both domestic and external demand, with household consumption the main driver. Real household consumption per capita increased 2.8% year-on-year, reflecting improving real incomes and a continued normalization of saving behavior after the crisis period.

Investment activity also contributed positively. Household investment rates edged up to 10.6%, while investment among non-financial corporations reached 26.8%, remaining elevated despite a slight year-on-year decline. Net exports added to growth, supported by a surplus in foreign trade.

Household savings declined modestly but remain historically high at 18.4%, indicating continued caution among consumers despite stronger spending. Overall, the data point to a more resilient Czech economy, underpinned by recovering domestic demand and stable investment conditions, a relevant signal for U.S. companies and investors monitoring Central European markets.

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