Daily summary of the Czech economy: Budget, ABB and Gamesa Electric, Givaudan, Wabtec and The Goldman Sachs Group (2 December 2025)

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Overview of the latest economic events in the Czech Republic

At the end of November, the Czech Republic's state budget showed a deficit of 232.4 billion Czech koruna. This increased the deficit by 49.3 billion Czech koruna, This is the lowest November deficit in six years, but also the sixth highest deficit in the history of the independent Czech Republic. The budget plan for the whole year anticipates a deficit of CZK 241 billion, while last year ended with a deficit of CZK 271.4 billion. According to the Ministry of Finance, higher tax and insurance premium collections contributed significantly to the year-on-year improvement.

At the same time, the positive outlook for growth in the Czech economy has been confirmed. According to current forecasts, it is expected to grow by 2.4 %, which is 0.4 percentage points higher than the original estimate. Growth is expected to slow slightly to 2.3% in 2026, but is expected to accelerate again to 2.7% in 2027.

Foreign investment

Several major acquisitions have taken place on the global market, which have the potential to influence the investment environment in Europe as well. The company ABB completed the acquisition of the power electronics division from Gamesa Electric, thereby strengthening its technological capabilities in the field of renewable energy sources.

In the fragrance and aroma segment, the company strengthened its position. Givaudan, which completed the acquisition of the American company Belle Aire Creations.

The company has expanded in industrial technologies. Wabtec, which acquired the group Frauscher Sensor Technology, a major supplier of railway signalling systems.

In the financial sector, it announced The Goldman Sachs Group company takeover Innovator Capital Management, which will expand its range of ETFs and other investment products for institutional and retail clients.

Significant events outside the Czech Republic with global impact

The wholesale price of gas for the European market has fallen below €28 per megawatt hour, the lowest level in more than 18 months. This is due to mild weather and expectations of progress in peace talks between Russia and Ukraine. This development may lead to lower energy costs not only in EU countries, but also in Czech industry and households.

Investors' growing interest in safe assets was also reflected in commodity markets. The price of silver for immediate delivery reached a new record high, climbing to 57.86 USD per troy ounce, signalling strong demand for precious metals in times of global uncertainty.

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