Overview of the latest economic events in the Czech Republic

The Czech economy is experiencing significant movements in key sectors, particularly in the automotive and defence industries. Company Škoda Auto announced that it increased sales by 13.6 % year-on-year in the first half of 2025 to 509 400 vozů. It sold 409,100 cars in Europe, making it the third best-selling brand on the continent, just behind Volkswagenem a Toyotou. The share of electric and hybrid vehicles also grew significantly, reaching 22.8 %, which is more than twice as much as last year. This trend supports the growing interest in green mobility and demonstrates the carmaker's strategic shift towards sustainable technologies.

Based in Olomouc Excalibur Army, součást holdingu Czechoslovak Group, recorded record sales growth of 47 miliard korun, bringing total sales to CZK 65.8 billion. The company also posted a record net profit of 11,18 miliardy korun. Excalibur Army benefits from the growing demand for military equipment and the modernisation of armies in Central Europe. The company also announced the acquisition of a smaller Slovakian firm focused on the development of unmanned ground systems, expanding its technology portfolio.

However, the agricultural sector faces complications. The harvesting of cereals and rapeseed is running significantly behind last year. Farmers have so far harvested only a fifth of cereals and a third of rapeseed. The main reason given by the Ministry of Agriculture is the prolonged bad weather, especially the cold and rainfall, which has hampered the harvest.

Foreign investment

Foreign capital continues to strengthen its presence on the Czech market. ČSOB announced the entry of a Belgian investment fund KBC Capital into its digital banking division, with KBC acquired 15% share. The transaction is expected to help accelerate the development of new fintech services and expand the bank's smart finance offering.

Společnost Pilsner Urquell, owned by the Japanese Asahi Group, announced an investment in a new bottling plant in Pilsen worth 2,3 miliardy korun. The project will not only increase production capacity but also reduce water and energy consumption, thereby Asahi responds to investor pressure towards sustainability.

In addition, a strategic merger was announced between a technology start-up Neuronix AI, which specialises in advanced algorithms for industrial automation, and German industrial giant Siemens. The acquisition, the value of which was not disclosed, strengthens the Czech Republic's position as a development centre for artificial intelligence in engineering.

Significant events outside the Czech Republic with global impact

The European Union and the United States reached a new trade agreement on Sunday that will fundamentally affect transatlantic relations. The agreement includes a reduction in tariffs on EU car imports to 2.5 %, which is welcome news, especially for European carmakers. Conversely, a 15% tariff on selected products imported into the US has been agreed, which has drawn mixed reactions among European politicians and exporters. European Commissioner Maroš Šefčovič described the agreement as the "best possible compromise" in the current geopolitical tensions.

The financial markets reacted positively at first, with European shares climbing to four-month highs. However, they subsequently gave back some of their gains due to uncertainty over the details of the deal and its long-term implications. Concerns about possible retaliatory US trade policies against other regions are growing among investors and analysts.

In the area of raw materials, it reports Royal Dutch Shell the conclusion of a large-scale contract with a Chinese state-owned company Sinopec for liquefied natural gas (LNG) supplies, which will have an impact on the global energy market and price dynamics, particularly in Europe and Asia. This agreement comes at a time when Europe is still looking for alternative energy sources following the reduction of Russian supplies.

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