The results of the Czech economy in Q4 confirmed the previous trend. Economic growth in the Czech Republic is not only continuing at a solid pace, but is also becoming more robust.
GDP rose by 0.6% quarter on quarter, thus maintaining the strong quarterly growth of 0.8% recorded in the previous quarter. The year-on-year growth rate was 2.6% in Q4. The favourable result in Q4 is also underlined by the fact that all key components of demand contributed to the growth. A drop in inventories was the only exception.
Household consumption expenditure remained a significant factor in overall GDP growth, increasing by just over 3% at the close of the year. Household consumption reached a milestone by exceeding its peak observed in late 2019 for the first time, thus rising above the pre-Covid level. Investment also accelerated, recording a similar contribution to growth as consumption. Fixed investment rose by 5.3% year on year in Q4, the highest growth rate in the last ten quarters. Besides investment in buildings and infrastructure, investment in machinery also picked up year on year, confirming expectations of a recovery in corporate investment. In addition, solid growth in government consumption continued at a rate of around 2.5%.
Growth in exports of goods and services accelerated in Q4 (5.1% year on year), and foreign trade also made a positive contribution to GDP growth.
On the supply side as well, all sectors again contributed to the increase in gross value added, including industry, which contributed 0.5 percentage point to growth – one of the highest values since 2023. All this illustrates that economic growth is not only continuing at a solid pace, but is also more robust, increasing the likelihood that this trend will continue.
The results for Q4 slightly exceeded the CNB’s forecast, with a marginally better outcome across all the main components except change in inventories. The overall picture remains unchanged. In 2025 as a whole, the Czech economy grew by 2.6% (1.1% in 2024), the highest figure since 2022. We expect a further slight acceleration in growth to close to 3% in 2026, driven by contributions from all components of demand. In addition to consumption and investment, foreign trade is also expected to gradually start contributing to growth.
Petr Sklenář, Executive Director of the Monetary Department
2025 Q4
year-on-year in %
actual figure
MPR Winter 2026
Gross domestic product
2.6
2.5
Household consumption
3.2
2.9
General government consumption
2.5
2.0
Gross fixed capital formation
5.3
3.0
Change in inventories (in p. p.)
-1.0
-0.1
Exports of goods and services
5.1
4.8
Imports of goods and services
5.3
5.1
Net exports (in p. p.)
0.1
0.1
prices of 2020 (chain-linked), seasonally adjusted
The economy continues to grow robustly
The CNB comments on the GDP figures for 2025 Q4
The results of the Czech economy in Q4 confirmed the previous trend. Economic growth in the Czech Republic is not only continuing at a solid pace, but is also becoming more robust.
GDP rose by 0.6% quarter on quarter, thus maintaining the strong quarterly growth of 0.8% recorded in the previous quarter. The year-on-year growth rate was 2.6% in Q4. The favourable result in Q4 is also underlined by the fact that all key components of demand contributed to the growth. A drop in inventories was the only exception.
Household consumption expenditure remained a significant factor in overall GDP growth, increasing by just over 3% at the close of the year. Household consumption reached a milestone by exceeding its peak observed in late 2019 for the first time, thus rising above the pre-Covid level. Investment also accelerated, recording a similar contribution to growth as consumption. Fixed investment rose by 5.3% year on year in Q4, the highest growth rate in the last ten quarters. Besides investment in buildings and infrastructure, investment in machinery also picked up year on year, confirming expectations of a recovery in corporate investment. In addition, solid growth in government consumption continued at a rate of around 2.5%.
Growth in exports of goods and services accelerated in Q4 (5.1% year on year), and foreign trade also made a positive contribution to GDP growth.
On the supply side as well, all sectors again contributed to the increase in gross value added, including industry, which contributed 0.5 percentage point to growth – one of the highest values since 2023. All this illustrates that economic growth is not only continuing at a solid pace, but is also more robust, increasing the likelihood that this trend will continue.
The results for Q4 slightly exceeded the CNB’s forecast, with a marginally better outcome across all the main components except change in inventories. The overall picture remains unchanged. In 2025 as a whole, the Czech economy grew by 2.6% (1.1% in 2024), the highest figure since 2022. We expect a further slight acceleration in growth to close to 3% in 2026, driven by contributions from all components of demand. In addition to consumption and investment, foreign trade is also expected to gradually start contributing to growth.
Petr Sklenář, Executive Director of the Monetary Department
prices of 2020 (chain-linked), seasonally adjusted