Czech GDP Grows 0.2% in Q1 2026

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.

The Czech Republic’s gross domestic product grew by 0.2% quarter-on-quarter in Q1 2026, easing from a 0.7% expansion in the previous quarter and falling below market expectations of 0.5%, according to preliminary estimates. This marked the slowest growth since Q1 2024 and was largely driven by a weaker foreign trade balance, while growth was supported by strong gross capital formation. On a yearly basis, GDP rose by 2.1% in the first quarter of 2026, moderating from a 2.7% increase in the preceding quarter. The annual expansion was underpinned by higher household consumption, particularly in final consumption expenditure, as well as gross fixed capital formation. Value-added gains were led by activities in trade, transportation, accommodation, catering, and industry.

The Czech Republic’s gross domestic product advanced 0.7% quarter-on-quarter in the three months to December 2025, following a 0.8% expansion in the previous period and coming in slightly above second estimates. Net trade contributed positively, as exports rose 0.8% (vs 0.9% in Q3), outpacing imports, which grew 0.6% (vs 0.2%). Household consumption also provided support, accelerating by 1.2% from 0.3%. Meanwhile, government spending was flat after a 0.7% increase, while fixed investment declined 0.1%, reversing a 0.1% rise in the previous quarter. On a yearly basis, GDP expanded 2.7% in Q4, slightly above earlier estimates but easing from 2.8% in the prior quarter. For the full year 2025, GDP increased 2.6%.