Overview of the latest economic events in the Czech Republic
The state budget ended January with a deficit of CZK 11.2 billion, an improvement on last year's deficit of CZK 26 billion for the same period. This positive change can be attributed to a 0.3 % reduction in total expenditure and improved tax revenue collection. Despite this progress, the current deficit remains the third largest in the country's history.
In the field of finance, Česká spořitelna introduced an innovative glowing payment card, which represents a world first in banking products. The aim of this innovation is to attract tech-savvy clients looking for unique and modern banking solutions. On the labour front, unions have declared a strike alert in response to proposed legislation that would allow terminations without cause. The move reflects growing concerns about job security and labour rights in the country.
Foreign investments - trends and interesting facts
The significant move concerns Prague-based FTMO, which is considered one of the fastest growing companies in Europe. FTMO is accelerating its expansion with the acquisition of financial platform OANDA from international fund CVC. The acquisition is expected to strengthen FTMO's global presence and diversify its service offering.
In addition, Czech engineering company PBS Aerospace has announced plans to establish a new plant in Roswell, Georgia, USA. This venture includes both a jet engine manufacturing plant and a research and development centre, representing an investment of up to $20 million (approximately CZK 487 million). This strategic move is aimed at strengthening PBS Aerospace's presence in the North American market.
Significant events outside the Czech Republic with global impact
The United States has imposed increased tariffs on imports from China, prompting Beijing to announce retaliatory measures. This escalation of trade tensions could disrupt global supply chains and affect economies around the world, including the Czech Republic, which is involved in international trade networks.
The Baltic States have taken significant steps towards energy independence by connecting to the European electricity grid, reducing their dependence on Russian energy supplies. This move may affect regional energy dynamics and could serve as a model for the Czech Republic's ongoing efforts to Europe is experiencing a rapid decline in natural gas supplies, with efforts to replenish them in the summer months expected to be costly. This situation may lead to an increase in energy prices across the continent, which will impact both consumers and industry in the Czech Republic.
Impact on the Czech economy
Growing trade tensions between the US and China and the potential imposition of tariffs on European exports pose risks for Czech producers. Given the country's dependence on exports of cars and industrial products, any disruption to global supply chains or a reduction in demand from key trading partners could slow production and economic growth. Czech companies may need to diversify export markets and invest in efficient measures to remain competitive.
With European gas reserves depleting faster than expected and efforts to diversify energy sources in neighbouring regions, the Czech Republic faces the challenge of securing a stable and affordable energy supply. Rising energy costs could increase business and household spending, underlining the urgency of expanding alternative energy sources and securing new energy partnerships.
Recent foreign investment activity shows both opportunities and concerns. While Czech firms are expanding abroad, attracting foreign capital to domestic industry remains crucial. Maintaining a stable investment environment will be crucial for the long-term sustainability of the economy.
Current exchange rates according to the CNB and Google Rates
Currency | Czech National Bank exchange rate (CZK) | Google Rate (CZK) |
---|---|---|
EUR | 25.05 | 25.0257 |
USD | 23.906 | 23.8527 |
PLN | 6.018 | 6.0036 |
HUF | 0.0622 | 0.0622 |
GBP | 30.106 | 30.0211 |
CHF | 26.531 | 26.5092 |
CNY | 3.29 | 3.2882 |
JPY | 0.15645 | 0.1566 |
RUB | N/A | 0.2619 |




Source about precious metals and Bitcoin: tradingeconomics.com
GH