Overview of the latest economic events in the Czech Republic

The Prague Stock Exchange today recorded a turnaround after three days of decline, with the PX index rising by 0.66 % to 2162.91 points. Moneta Money Bank shares showed the strongest growth, adding 2.5 %. On the other hand, Erste Group Bank suffered a downward trend. The Czech koruna strengthened against both major currencies at the beginning of the week - against the euro to 24.89 CZK/EUR and against the dollar to 21.76 CZK/USD.

Wages rose in both nominal and real terms in the first quarter of this year. According to the Czech National Bank's forecast, wages increased by 4 % year-on-year after inflation. The Czech Statistical Office is expected to confirm this trend in its report to be published on Wednesday.

A prominent theme of the day is the strike alert called by Smartwings' four unions. Employees point to a shortage of pilots, chaotic flight planning and a lack of communication from management. The company rejects the accusations and insists it is ready for the summer season. It says a possible strike would be illegal.

The gap between the cost of a mortgage and the cost of rental housing is widening in the real estate market. In December 2024, the average mortgage payment was CZK 9,245 higher than rent, which, according to an analysis by the Rental Housing Association, makes renting more attractive. Despite a slight decline in mortgage rates, house prices are rising faster than the market can respond.

Foreign investment

Škoda Group, a major European manufacturer of transport vehicles headquartered in Pilsen, reported a record EBITDA growth of 185 % to CZK 1.55 billion. The company maintained sales at CZK 34 billion and its new orders increased by 74 % year-on-year to CZK 43 billion. The total portfolio volume stands at CZK 85 billion. Last year, the company produced 432 public transport vehicles, including trams, trolleybuses and trains, which is 8 % more than in the previous year.

The energy company MND from Hodonín, part of Karel Komárek's investment group KKCG, announced a drop in sales by half to CZK 28.6 billion and a reduction in profit by a third to CZK 572 million. The results reflect the volatile development of energy commodity prices on the European market.

Raiffeisenbank continues its expansion in the banking sector, announcing the acquisition of Czech fintech company BudgetBee. The acquisition is intended to strengthen the bank's digital services and expand its personalised financial advice offering.

Czech investment fund PPF has agreed to divest its 10% stake in Dutch telecoms firm Proximus Group in response to a shift in portfolio strategy towards financial technology and Asian markets.

In the technology sector, the German company Siemens announced the acquisition of the Czech startup GridSense, which specializes in AI power management in industrial networks. The transaction, the value of which has not been disclosed, is intended to strengthen the company's competencies in energy efficiency and smart grid solutions.

Significant events outside the Czech Republic with global impact

Eight OPEC+ Member Countries today announced an increase in oil production by 411,000 barrels per day from July 2025. The move comes at a time of rising global demand and a modest increase in crude oil prices, which may be reflected in inflation in import-dependent countries.

The US company Tesla has seen mixed results in Europe - while sales of electric cars fell in Paris and Madrid, they more than tripled in Norway thanks to the new Model Y. This positive signal could lead to a recovery in European sales in the coming months, especially with the planned expansion of deliveries of the upgraded model.

French bank BNP Paribas is considering a new investment fund focused on green technologies in the Central European region, including the Czech Republic, to support the transition to a carbon-neutral economy and to take advantage of the growing interest in ESG products among investors.

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