Overview of the latest economic events in the Czech Republic

The Czech economy is in a moderate recovery phase in April 2025. Inflation remains stable at around 2.5 %, in line with the Czech National Bank's inflation target. Unemployment remains low at 3.2 %, although the labour market continues to face problems with a shortage of skilled labour.

In this environment, the Czech Republic remains an attractive destination for foreign direct investment. In the first four months of 2025, projects worth over CZK 35 billion were approved. Key areas of investment include electronics, semiconductors, automotive and renewable energy. For example, the US firm ONSEMI announced an expansion of chip production in Rožnov pod Radhoštěm, with an investment of up to two billion dollars. Companies from South Korea, Japan and Germany are also interested in the Czech market, building high value-added research and development centres here.

Foreign investment

The global political situation continues to have a significant impact on the economic environment. The new tariffs introduced by US President Donald Trump, while generating more revenue for the US budget, have led to concerns about a possible slowdown in international trade, especially European trade.

Some Chinese ships bound for the US have reduced their routes, which may also affect Czech exporters who are part of supply chains linked to the Asian market. The Czech government is therefore strengthening economic diplomacy and supporting the diversification of export destinations.

The Czech Republic has seen a strategic shift in the energy sector. Thanks to the TAL-PLUS project, the country is now fully supplied with non-Russian oil for the first time. This is a major step towards strengthening energy security. In addition, Čepro is building six large-capacity gasoline and diesel storage tanks, each with a capacity of ten million litres, in Hněvice in the Litoměřice region. These projects support independence and preparedness for possible supply disruptions.

The recovery is also evident in the real estate market. The number of flats sold in Prague is reaching record highs and property prices are rising. The average price of a new apartment in the capital has climbed to almost CZK 160,000 per square metre, which represents a year-on-year increase of 12.5 %. Experts expect further price growth, especially given the limited supply and continued investor interest.

Significant events outside the Czech Republic with global impact

Overall, the Czech Republic is on a stable course in the current geopolitical and economic context. Despite global challenges such as trade tensions or energy uncertainties, it is able to seize opportunities to strengthen its economic position and modernise key sectors.

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