Czech Republic Q2 GDP Growth Confirmed at 0.4%

The Czech Republic’s gross domestic product expanded by 0.4% quarter-on-quarter in the second quarter of 2026, accelerating from 0.2% growth in Q1 and matching preliminary estimates, according to the second estimate. Domestic demand contributed positively to the economy, growing 0.5% from 0.2% a quarter earlier, driven largely by gains in household consumption (0.5% vs 0.3%), while government spending growth remained unchanged at 0.1%. Meanwhile, gross fixed capital formation moderated to 1.5% from 2.0% in Q1. On the production side, growth was supported by industry (+0.9%), trade, transport, accommodation and catering (+0.4%), finance and insurance (+2.7%), real estate activities (+0.6%), and construction (+0.3%). On a yearly basis, the economy grew by 1.9%, slowing from 2.2% in the prior period and edging below preliminary estimates of 2.0%.

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.