The Czech economy is projected to grow by 2% in 2025, with a modest acceleration to 2.3% in 2026, according to a new macroeconomic forecast from the Czech Chamber of Commerce. Household consumption remains the main engine of growth, while investment activity is expected to play a more prominent role next year.

Inflation is forecast to average 2.5% in 2025, easing slightly to 2.3% in 2026. Real wages are expected to rise by 3.6% this year and 2.7% in 2026, potentially restoring household purchasing power to levels seen before the inflation surge of 2022–2023.

Unemployment is anticipated to remain stable at an average of 4.3% over both years. However, investment remains subdued, with businesses showing less dynamism than expected due to ongoing global uncertainty and trade barriers.

The forecast is broadly in line with recent projections from the Ministry of Finance and the Czech National Bank, both of which foresee similar trends in growth and inflation over the next two years.

Source: Ceskenoviny.cz

Author: CzechTrade and CzechInvest office in New York