Czech GDP Grows 0.2% in Q1 2026

The Czech Republic’s gross domestic product expanded by 0.4% quarter-on-quarter in the second quarter of 2026, accelerating from a 0.2% increase in the previous quarter but falling slightly short of market expectations of 0.5%, according to preliminary estimates. Growth was supported by higher final consumption expenditure and a positive contribution from the foreign trade balance, while gross capital formation weighed on the overall performance. Industry was the primary driver of quarter-on-quarter gross value added growth, with most service sectors also recording solid gains. On an annual basis, the economy grew 2.0% in the Q2 2026, easing from a 2.2% expansion in the previous quarter, driven mainly by stronger household final consumption expenditure and rising foreign demand. Industry made the largest contribution to gross value added growth, with additional support from the trade, transport, accommodation and food service, and information and communication sectors.

The Czech Republic’s gross domestic product grew 0.2% quarter-on-quarter in the first three months of 2026, easing from a 0.7% expansion in the previous period, confirming second estimates. Net trade contributed negatively to growth, as imports rose 4.4% from 0.8%, outpacing exports, which grew 2.9% from 0.9% in Q4 2025. In addition, household consumption moderated to 0.3% from 1.2%. On the other hand, government spending edged up by 0.1% after stagnating in the previous quarter, while fixed investment advanced 3.0% from 0.2%. On a yearly basis, the economy expanded 2.2% in Q1, slowing from a 2.7% growth in the prior period.

The Czech Republic’s gross domestic product grew by 0.2% quarter-on-quarter in the first quarter of 2026, easing from a 0.7% expansion in Q4 2025 and matching preliminary estimates, according to second estimates. The slowdown was primarily driven by domestic demand, with household consumption slowing to 0.6% from 1.2%, government spending declining 0.3% after stagnating, and gross fixed capital formation easing to 2% from 2.8%. Meanwhile, growth was supported by the trade, transportation, accommodation, and catering sector (+0.4%), finance and insurance (+4.3%), and professional, scientific, technical, and administrative activities (+0.9%). Construction (+0.2%) and real estate activities (+0.4%) also performed well.