Czechia Q2 GDP Growth Slows to Weakest in a Year

The Czech Republic’s gross domestic product expanded 0.5% quarter-on-quarter in the three months to June 2025, easing from 0.7% in the previous period and confirming second estimates. This marked the slowest quarterly growth in a year, as the economy came under pressure from weaker net trade. Imports advanced 1.5% (vs 2.5% in Q1), outpacing exports which grew by just 0.3% (vs 3%), resulting in a drag on overall activity. Still, domestic demand provided some support, with household consumption strengthening to 1% from 0.4%, government spending rebounding to 1.6% from a 0.2% contraction, and fixed investment growth accelerating to 1.6% from 0.2%. On a yearly basis, GDP expanded 2.6% in Q2, in line with earlier estimates and up from 2.4% in the prior quarter, marking the strongest annual growth rate since Q2 2022.