Overview of the latest economic events in the Czech Republic
The Czech koruna weakened again today against major world currencies. It fell to CZK 24.56 to the euro and to CZK 21.16 to the dollar. The weakening of the currency is related to the continuing uncertainty on the European markets, especially in connection with the decline in industrial production and subdued foreign demand. The situation is also aggravated by slowing GDP growth, which, according to the CSO's estimate for Q2, reached only 0.4 % year-on-year.
The major news of the day is the announcement by the carmaker Hyundai Motor Manufacturing Czech about the planned interruption of production at its plant in Nosovice starting next week. Production will stop on all three shifts due to a drop in orders and weaker interest in new models. According to spokesman Jan Rodek, this is a temporary measure that should not affect employment. Hyundai is one of the most important exporters from the Moravian-Silesian Region.
Group PPF has announced the exit from the ownership structure of the German media group ProSiebenSat.1. The Italian company will take over the 15,7 % share MFE-MediaForEuropecontrolled by the Berlusconi family. The move is part of a wider strategy PPF, which now focuses more on telecommunications, fintech and healthcare.
Significant acquisition on the domestic real estate market - the fund Crestyl Real Estate bought the Rustonka office centre in Prague's Karlín district from the J&T Real Estate. The value of the transaction has not been disclosed, but market estimates put it at approximately 3 billion crowns. This is one of the largest real estate transactions of 2025 in the capital.
Foreign investment
Czech Software Company SentiSquare, specializing in artificial intelligence for text analysis, announced the expansion of its operations to the US. The company has entered into an agreement with US retail giant Costcofor which it will develop tools for automatic processing of customer feedback. This is the company's first such major order outside the European market.
Furthermore, the company DoDo Logistics, a provider of urban logistics, has announced its entry into Austria and Hungary. With the acquisition of local startups in both countries, DoDo plans to double its turnover during 2026. CEO Miroslav Mišunek said the expansion is possible thanks to strong support from investors, especially Miton Fund.
Significant events outside the Czech Republic with global impact
US President Donald Trump has imposed new tariffs on imports of goods from India, with some tariffs reaching up to 50 %. The move is in response to ongoing trade tensions and Indian purchases of Russian oil. The Indian government considers the measures unfair and is considering countermeasures that could affect global supply chains in textiles and pharmaceuticals.
An arms concern opened in Germany Rheinmetall the largest ammunition factory in Europe, specialising in the production of 155 mm calibre ammunition. The move is the result of increased demand for ammunition in the context of the ongoing war in Ukraine. Rheinmetall is a key supplier of arms not only to Ukraine but also to member states NATO.
The Czech economy was facing a combination of external pressures and a domestic slowdown. A weaker koruna, a temporary slowdown in production in key industrial companies and geopolitical risks are affecting the investment mood. At the same time, however, some Czech firms are expanding abroad and entering into significant contracts. In the coming months, it will be crucial to monitor the development of industrial production and changes in the trade balance.
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