Czech economy grows 2.6 percent as household spending rebounds

Czechia’s economy grew by 2.6 percent last year, a result analysts say confirms the country’s economy is in relatively good shape. They highlighted that household consumption in the fourth quarter rose above its level before the COVID-19 pandemic. Economists expect growth to continue at a similar pace this year. Pavel Sobíšek of UniCredit Bank said 2025 was the first year when the Czech economy was no longer affected by the series of shocks that had weighed on it in previous years. The result broadly matches the country’s economic potential despite weaker performances in key trading partners such as Germany and Slovakia. Analyst Jan Slabý from Ecovis said the figures confirm Czechia’s strong position in Europe, citing solid growth, low inflation and unemployment, and rising real wages. However, he warned that public finances remain the country’s main macroeconomic challenge, as government debt continues to grow instead of declining.