FX.co ★ Czech Republic GDP Growth Highest in Over 3-Years

In the first quarter of 2025, the Czech Republic's gross domestic product (GDP) increased by 0.8% quarter-on-quarter, surpassing initial projections of a 0.5% rise and improving from a 0.7% growth in the preceding quarter, according to the second estimates. This represents the most robust economic expansion for the Czech Republic since the fourth quarter of 2021, largely driven by a significant rebound in fixed investments, which recorded a 1.1% growth compared to a 2.4% decline in the third quarter. Additionally, net trade made a positive impact on the GDP, with exports growing by 2.8%, outpacing the 2.1% rise in imports. Despite these gains, government expenditure saw a reduction for the first time in a year, decreasing by 1.5%, down from a 0.7% increase, while private consumption experienced a slowdown, rising only 0.1% compared to the previous 1.5% growth. On an annual basis, the economy grew by 2.2% in Q1, exceeding earlier forecasts of a 2% increase, marking the fastest rate since the second quarter of 2022, and followed a 1.8% growth in the previous period.