Czech Republic Q1 GDP Growth Confirmed at 0.2%

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.

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.