Daily summary of the Czech economy: Tatra Trucks, Central Group, Trigema, FérMakléři.cz and Bosch (13 October 2025)

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Overview of the latest economic events in the Czech Republic

The Czech economy is entering the final quarter of the year with moderate optimism, although many indicators remain mixed. According to the latest data Czech Statistical Office industrial production fell by 1.3 % year-on-year in August, with the decline mainly dragged down by the automotive sector. The export performance of firms such as Skoda Auto or Tatra Trucks however, remains stable, mainly due to orders from the Middle East and India. The construction sector, on the other hand, is showing a recovery - property developers Central Group, Finep a Trigema reports an increase in demand for new projects, especially in Prague and Brno.

The real estate market continues to grow prices of older flats, which in the third quarter rose by 21 % year-on-year to average 78 978 CZK per square meter. Compared to the second quarter it is a two percent growth, the real estate platform reported FairBrokers.cz. Analysts point out that a further slight increase is expected by the end of the year due to limited supply and sustained high demand.

The financial market continues to recover in the mortgage segment. The average mortgage interest rate reached 4.59 % in August, the lowest level since mid-2023. Banks such as Czech Savings Bank, Commercial Bank a Moneta Money Bank expanded the range of refinancing products to attract clients waiting for further rate cuts. The mortgage market is thus reviving after two years of stagnation and contributing to the overall stabilisation of the housing sector.

Foreign investment

New foreign direct investment into the Czech economy in a volume exceeding 18 billion crowns. A significant event is the entry of the German company Bosch to a research project on electromobility in Brno, where it plans to build a centre for the development of battery systems. Another investment has been announced by the US company Microsoft, which will expand its data centre in Prague with a new cloud campus focused on artificial intelligence and cybersecurity.

In Ostrava, the company signed ArcelorMittal an agreement to supply green steel to domestic automakers, including Skoda Auto a Hyundai Motor Manufacturing Czech. This step should contribute to reducing the emission footprint of the Czech industry and strengthen its position within the European Union. At the same time, negotiations between the CEZ and the South Korean company KHNP on the terms of the construction of a new nuclear unit at Dukovany, which should be concluded by the end of this year.

Significant events outside the Czech Republic with global impact

There is heightened nervousness in global markets following US President Donald Trump's announcement of increased tariffs on Chinese imports. The cryptocurrency market reacted with a sharp drop, with nearly $20 billion in capital outflows in 24 hours, according to The Economic Times. Bitcoin depreciated by 14 % and investors are shifting their funds into gold and government bonds.

European industry continues to face challenges. According to Bloomberg, German industrial production is estimated to be between 91 and 93 % of 2021 values, the same as in 2006. The effects are spilling over into Czech supply chains, particularly in the automotive and engineering sectors. Companies such as Siemens, Continental a ZF Friedrichshafen have already announced production cuts at several European plants.

The Czech Republic is doing better on agricultural markets. This year, the Žatec region had an above-average hop harvest with a higher alpha-bitter acid content, said the chairman Hop Growers Association of the Czech Republic Luboš Hejda. The favourable weather brought relief to exporters who supply Czech hops to more than 60 countries around the world.

Overall, the Czech economy was in a balance between cautious optimism and uncertainty stemming from international turbulence. The key factor in the fourth quarter is expected to be the development of interest rates by the Czech National Bank, which could proceed to a further modest cut.

gnews.cz - GH

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