Daily summary of the Czech economy: DEZA, Metrostav, Tatra Trucks, Hongqi and Goldman Sachs (20 June 2025)

578

Overview of the latest economic events in the Czech Republic

The Czech economy closed the first half of the year with a strong signal of investor interest in government bonds. The Ministry of Finance placed CZK 11.2 billion worth of bonds in the final auction today, exceeding the original issuance plan for June by more than one billion. Investors showed double the demand and wanted Czech bonds worth CZK 23.5 billion in total. According to the Czech National Bank, this is a positive signal for the stability of state financing and market confidence.

However, the slight scepticism on the domestic market is confirmed by the layoffs at DEZA, which is part of the Agrofert holding. As a result of the difficult economic situation, DEZA plans to lay off 123 employees, bringing the number of workers down to around 750. The move highlights the continuing problems in some industries with rising costs and falling demand.

On the other hand, the Metrostav construction group reports strong results, increasing its net profit by 53 percent to CZK 1.7 billion last year and intends to approve a dividend of CZK 46 per share, thus repeating last year's profit payout level. Metrostav's operating income rose 11 percent to CZK 57.3 billion, underlining the stability of the large infrastructure projects sector.

The Czech koruna remained unchanged against the euro, holding at CZK 24.82 to the euro. It weakened slightly against the US dollar to CZK 21.61 to the dollar. The Prague Stock Exchange continued to decline for the ninth day in a row, reflecting investors' concerns about global market developments and persistent geopolitical tensions.

Foreign investment

The decision of the Tatra Trucks automotive company in Kopřivnice to invest more than CZK 7.3 billion in the modernisation and expansion of production is a significant impetus for future investments in the Czech Republic. The company plans to double its annual production to 3,000 vehicles and strengthen its global competitiveness. The development plan includes digitalisation, new production halls and a central logistics warehouse. These investments are not only to boost exports but also to bring new job opportunities to the region.

An important milestone in the field of international trade is the entry of the Chinese brand Hongqi into the Czech market. The brand, which has historically been intended only for the Chinese state elite, will now be imported to the Czech Republic and Slovakia thanks to the Slovak company Plastonic, which will become the official importer. The move confirms the growing interest of Chinese manufacturers in the Central European market and strengthens the business ties between the two countries.

Significant events outside the Czech Republic with global impact

Globally, financial market tensions, geopolitical risks and changes in monetary policy remain key issues. Within Europe, discussions continue on energy security and investment support for renewables. A strong boost for the region came from German carmaker Volkswagen, which announced the acquisition of a battery technology start-up for over €400 million to support the development of electromobility in the EU.

Among US corporations, Goldman Sachs has caught the eye today, announcing the expansion of its investment activities in the field of artificial intelligence through the acquisition of a smaller fintech company. Similarly, Japan's SoftBank confirmed the merger of its telecoms divisions to strengthen its position in the Asian market and optimise costs.

Investors around the world are thus monitoring not only individual deals and expansions of big players, but also macroeconomic data that determine the future direction of monetary policy of major central banks. These factors will also influence the Czech economy and its export orientation in the second half of 2025.

Current exchange rates according to the CNB and Google Rates

tradingeconomics.com

gnews.cz - GH