Czechia Economy Grows 0.3% in Q2

The Czech Republic’s gross domestic product rose by 0.3% quarter-on-quarter in the second quarter of 2026, following a downwardly revised 0.1% growth in the previous period, slightly missing the second estimate of a 0.4% expansion. Net trade contributed positively to growth as exports rose by 0.9% from 0.6%, while imports stagnated following a 1.9% increase in Q1. Moreover, household consumption increased to 0.5% from 0.3%, while government spending grew by 0.6% after recording no growth in the previous quarter. On the other hand, fixed investment fell notably by 2.7%, following a 2.8% gain. On a yearly basis, the economy expanded by 1.8% in Q2, easing from a downwardly revised 2.1% growth in Q1 and slightly missing the second estimate of 1.9%.

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.