Overview of the latest economic events in the Czech Republic

Prague - The Czech Statistical Office has today refined the data on GDP growth in the first quarter of 2025. Compared to the first estimate from April, there has been a slight upward revision. Gross domestic product grew by 2.1 % year-on-year and 0.6 % quarter-on-quarter. This development confirms the gradual recovery of the domestic economy after a period of stagnation. Analysts attribute the growth mainly to strong demand in the services sector and a continued recovery in industrial production.

The Prague Stock Exchange recorded a slight decline on Thursday. The PX index lost 0.37 % and closed at 2158.52 points. The biggest falls were recorded by shares of ČEZ, Komerční banka and Erste Group. On the other hand, the issues of Colt CZ and Kofola showed a slight strengthening. The financial sector thus reacted to the uncertainty associated with foreign events, while the traditional manufacturing sector maintained its stability.

The success of ŠKODA JS in Pilsen, which this year won seven contracts for the Dukovany Nuclear Power Plant with a total value of more than CZK 500 million, is significant domestic news. The contracts will ensure the plant's capacity until 2030 and support the stability of the supply chain in the Czech nuclear power industry.

Foreign investment

Brno - Česká zbrojovka, a part of the Colt CZ Group SE, has seen increased interest in the new version of the BREN assault rifle. Demand in the tens of thousands of units has been registered mainly from NATO member countries. The company is preparing mass production for next year and expects a significant increase in exports. This development confirms the growing importance of the Czech defence industry on international markets.

At the 37th National Congress of the Chamber of Commerce, a call was made for increased public investment. The President of the Chamber of Commerce Zdeněk Zajíček appealed to the state to increase competitiveness through modernisation and support for business. According to him, the long-term stagnation of the share of investment in state spending reduces the potential of the Czech economy.

Pharmaceutical group Zentiva has also come to the fore, announcing the purchase of Polish generic drug maker Polpharma Generics. The transaction will strengthen its position in Central and Eastern Europe. The move increases Zentiva's competitiveness against global players such as Teva and Sandoz.

Significant events outside the Czech Republic with global impact

Washington - The United States Federal Trade Court has suspended the tariffs imposed by President Donald Trump's administration. The so-called reciprocal tariffs, which amounted to as much as 20 % on goods from the EU, were found to be in violation of the International Emergency Economic Powers Act. The repeal does not yet apply to sectoral tariffs on steel, aluminium and automobiles. The decision brought relief to European exporters and caused the euro to strengthen slightly against the dollar.

These developments have brought volatility to global stock markets. The US S&P 500 ended the day up 0.8 %, while the German DAX was unchanged. Investors are also keeping a close eye on geopolitical developments in Asia, where Chinese conglomerate Huawei announced the acquisition of Japanese semiconductor firm Elcore, expanding its technology capabilities amid growing pressure from US sanctions.

Other significant transactions include the merger of French energy company Engie with Spain's Iberdrola Renewables. The merger aims to create a strong player in the renewable energy sector in Europe. The deal is worth over €12 billion and will also impact the markets in the Czech Republic, where both companies operate wind and solar projects.

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