The Prague Stock Exchange closed at a historical high for the seventh consecutive gain. The CNB left rates unchanged and worsened the outlook for Czech economic growth to 2.2 percent for this year. Industrial production in June rose by four percent year-on-year, the most since last December. Foreign trade ended with a surplus of 15.5 billion crowns. A new analysis by Moore Czech Republic shows that the Czech Republic retains a record share of the wealth it creates on its territory.
The Prague Stock Exchange closed at a new high for the seventh consecutive gain, surpassing the previous record close from this February. The PX index rose by 1.30 percent to 2,805.12 points. Erste Bank shares added more than three percent and VIG insurance company securities gained over five percent.
The CNB Bank Board left the key interest rates unchanged at Thursday's meeting. The two-week repo rate thus remains at 3.75 percent. The central bank also worsened the outlook for this year's GDP growth to 2.2 percent from the previous 2.5 percent. Governor Aleš Michl stressed that the bank board sees prevailing risks in the economy pointing toward higher inflation, which continues to require a relatively tight monetary policy.
Industrial production in the Czech Republic rose by four percent year-on-year in June, the most since last December. Most industrial sectors performed well, with output increasing by 1.2 percent month-on-month. The value of new orders grew by 13.1 percent year-on-year, with foreign orders up 19.5 percent and remaining the main source of recovery for Czech industry. This follows from data released by the Czech Statistical Office.
Foreign trade of the Czech Republic ended June with a surplus of 15.5 billion crowns, which was 11.5 billion lower year-on-year. Exports rose by 11.2 percent year-on-year to 464.7 billion crowns, while imports increased by 14.9 percent to 449.2 billion crowns. Trade in motor vehicles and machinery had a positive effect on the balance, while trade in computers and electronics had an adverse effect, the Czech Statistical Office stated.
Construction output slowed in June to two percent year-on-year from 4.4 percent in May. The sector thus remains in positive territory, but the pace of recovery is slowing — likely due to higher interest rates and rising material costs.
The Czech Republic retains a record share of the wealth it creates on its territory. Gross national income reached, according to preliminary data for 2025, 97.5 percent of GDP, compared to only 92 percent in 2010. Since 2010, the Czech Republic has improved by five percentage points, by far the most significant improvement of all European Union countries. The main driver of this turnaround is the rise of Czech capital — revenues of domestic companies and investors from abroad grew between 2010 and 2024 from three to 16 billion euros annually, more than fivefold. This follows from an analysis by the consulting group Moore Czech Republic.
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