Daily economic news from the Czech Republic: CEZ, PRE, Hyundai, Czech Central Bank (21 April 2025)

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Overview of the latest economic events in the Czech Republic

 Czech economic growth in 2025

The Czech economy continues its moderate recovery in 2025. The Ministry of Finance forecasts GDP growth of 2.3 %, with household consumption and investment spending as the main drivers.The OECD expects growth to accelerate to 2.5 % in 2026, but warns of risks associated with global uncertainties.

Inflation and wages

Annual inflation reached 2.7 % in March 2025, which is slightly above the Czech National Bank's target.Average gross wages in Q4 2024 were CZK 49 229, an annual increase of 4.6 %. Real wages are thus rising again after a long period of time, which is supporting domestic consumption.

Foreign investments and acquisitions

The global economy in 2025 is particularly affected by geopolitical uncertainties, technological innovations and developments in inflation and interest rates, which may have an impact on trade policy and global markets.

Investing in electric vehicles

The development of electromobility remains one of the priorities of the Czech government and the private sector in 2025. The Czech Republic is striving not only to catch up with more advanced European countries in the field of transport electrification, but also to become a major production and logistics hub within the electromobility industry. The Ministry of Industry and Trade has announced new subsidy programmes supporting the construction of public charging stations, domestic charging infrastructure and investment in the production of components for electric vehicles.

The state-owned energy group CEZ plans to operate more than 1,000 charging points across the country by the end of the year, with every fifth one to be equipped with ultra-fast charging technology. Private investors are also ramping up their capacity - for example, E.ON and PRE are investing in infrastructure mainly in regions outside the main urban centres, where the infrastructure gap is still greatest.

In terms of vehicle production, Hyundai has announced a further expansion of its plant in Nosovice, where it will produce a new European electric car model from 2026. The investment of more than CZK 800 million will create hundreds of new jobs and strengthen the Czech Republic's position as a manufacturing hub for electromobility in the Central European region. In addition, a new gigafactory for battery production is being prepared in the Ústí nad Labem region, which the government is negotiating with European partners and private investors.

The government expects these steps to accelerate the transition to emission-free transport, reduce energy dependence and strengthen the competitiveness of Czech industry within the EU's green transformation.

Significant events outside the Czech Republic

The global economy in 2025 is mainly influenced by geopolitical uncertainties, technological innovations and developments in inflation and interest rates.

Current exchange rates according to the CNB and Google Rates

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