Daily summary of the Czech economy: Central Group, Škoda Auto, Foxconn Czech Republic and UBS Group (17 June 2025)

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Overview of the latest economic events in the Czech Republic

The Czech economy experienced a mixed day, with continued growth in industrial production confirmed and a decline in housing completions reported. According to data from the Czech Statistical Office, industrial production rose by 0.8 % month-on-month in April compared to 0.5 % in March. This trend is supported by companies such as Škoda Auto, which announced an expansion of electric car production in Mladá Boleslav and plans to invest CZK 3bn in modernising its lines. On the other hand, the decline in residential construction continues, with only 30,274 apartments completed in the Czech Republic in 2024, a year-on-year drop of more than 20 %. This situation is being addressed by Central Group and Finep, which have announced new projects in Prague and the Central Bohemian Region to increase housing affordability.

Trading on the stock exchange was cautious today. The PX index fell only slightly by 0.01 % to 2147.62 points. The shares of Erste Group and Komerční banka fared positively, while ČEZ and Moneta Money Bank lost ground. In addition, CEZ announced the completion of the acquisition of a minority stake in Severoceske doly, which will strengthen its position in coal mining, as the company responds to the growing demand for stable energy sources.

Foreign investment

Foreign capital continues to play a significant role in the Czech economy. Foxconn Czech Republic announced that it is investing an additional CZK 1.2 billion to expand its production capacity in Pardubice, which is expected to bring hundreds of new jobs. At the same time, Honeywell confirmed the opening of a new research and development centre in Brno, where it will focus on smart building technologies. This expansion is part of a wider trend of relocating advanced manufacturing and development activities to Central Europe.

Another important signal for investors is the successful acquisition of the Czech startup Productboard by the American software company Atlassian. The value of the transaction exceeded CZK 5 billion and signals the growing interest of foreign players in the Czech technology scene. This trend is also supported by the government's strategy to promote innovation and technology parks.

Significant events outside the Czech Republic with global impact

Global markets today are reacting primarily to the dramatic escalation in the Middle East. The price of North Sea Brent crude oil jumped by more than 8 % to reach USD 78.50 per barrel overnight, the highest level since late January. This is due to the news of an Israeli attack on Iran, which has raised fears of disruption to oil supplies from the region. Czech businesses, especially logistics and transport firms, which are already reporting higher costs, may also be affected by the increased oil prices.

In the European Union, industrial production data was released, which fell by 1.8 % month-on-month in April after a 1.9 % increase in March. This decline contrasts with the moderate growth in Czech production and confirms that Czech industry has so far maintained a relatively good shape. However, investors and exporters are keeping a close eye on demand developments in Germany and other key markets.

Interesting developments have also occurred in the financial sector - Swiss UBS Group today announced the final completion of the integration of part of the assets of the former Credit Suisse, consolidating its position as Europe's largest private bank. This move may have a long-term impact on capital flows to Central Europe, including the Czech Republic.

Overall, the situation in the Czech economy was stable, but global geopolitical tensions and rising energy prices could pose a significant risk to inflation and industrial costs in the coming weeks. Economists advise companies to monitor commodity prices and optimise their supply chains in a timely manner.

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