Analysts: Economic confidence points to mild recovery in Czech economy

Improved economic confidence, highlighted in a survey by the Czech Statistical Office (ČSÚ), indicates a continued but moderate recovery in the Czech economy, analysts said. Confidence is at its highest level since mid-2022, though challenges persist in the industrial sector. Consumer confidence rose by 0.9 points to 101.6, reflecting cautious optimism despite inflation concerns. Business confidence increased by 1.3 points to 97.3, driven by growth in services but hindered by a 3.9-point decline in industrial confidence. Analysts warn that challenges in Czech industry are linked to Germany's struggles and potential trade barriers under the new U.S. administration. Annual GDP growth is forecast at 1%, below the economy’s potential.