Daily summary of the Czech economy: CEEC Research, CEPS, CNB, Amazon and BMW (25 June 2025)

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Overview of the latest economic events in the Czech Republic

The construction sector in the Czech Republic has an optimistic outlook. According to a new analysis by CEEC Research, presented at a conference at Prague Castle, 81 % out of 165 companies surveyed expect growth of 2.7 % in 2025 and a further 2.4 % in 2026. Growth will be driven by economic recovery, increased state investment and falling interest rates. Revenues of construction firms could grow by 2.5 % over this period.

A major news was brought by the energy company CEPS, which published a record net profit of CZK 7.18 billion for 2024, which represents a year-on-year increase of 82 %. The 8.6 % decline in total revenue to CZK 29.4 billion was offset by lower costs and more efficient operations in a period of lower electricity prices.

On the monetary front, the Czech National Bank's (CNB) Bank Board met today and, as expected, kept the key interest rate at 3.5 %. The move was in line with earlier statements by the board members and reflects the current uncertainty about inflation and economic growth in the second half of the year.

The Prague Stock Exchange continued to grow, with the PX index gaining 0.75 % to 2142.73 points. The main driver was the shares of energy giant CEZ, which reacted positively to the approval of the dividend during Monday's general meeting. This event brought significant impulses to investors and boosted confidence in the stability of the Czech energy sector.

Foreign investment

Growing confidence in the Czech economy is also reflected in the activity of foreign investors. Amazon has announced a planned expansion of its logistics centre near Dobrovíz with new warehousing units, which will create up to 1,000 new jobs. The investment, worth approximately CZK 2 billion, is intended to support faster delivery times and strengthen the distribution network in Central Europe.

The German carmaker BMW has started construction of a new development centre in Pilsen focused on electromobility, with a total investment exceeding CZK 3.5 billion. The project will contribute to the development of the region and deepen cooperation between technical universities and industry.

In addition, the South Korean company LG Innotek is investing in the construction of a new plant for the production of electronic components in the Moravian-Silesian region. The contract was signed with the participation of the Ministry of Industry and Trade of the Czech Republic and the total investment will reach almost CZK 4 billion.

Significant events outside the Czech Republic with global impact

Internationally, tensions between China and the United States continue, this time in the semiconductor sector. The US government is considering extending a ban on the export of advanced chips to China, which could slow global supply chains and affect technology prices in Europe.

There is an intense debate on the European scene about the introduction of a carbon tax on imports of energy-intensive products (CBAM), which the European Commission is proposing to start in January 2026. The move could affect exporters from third countries and change the global trading environment - especially for companies like ArcelorMittal, which is a major supplier to the EU.

Meanwhile, a major acquisition has taken place in the US: JPMorgan Chase announced the purchase of fintech company Plaid for USD 15 billion. This move may influence the market environment in digital banking, which is also important for Czech banks such as Moneta Money Bank, which are investing in their own technological development.

On the domestic scene, let us also mention the merger of the Crestyl real estate group with the competing developer FINEP, which should lead to the creation of one of the largest players on the Czech real estate market. The transaction is subject to the approval of the Office of Competition and Consumer Protection and may have a major impact on the residential housing market, especially in Prague and Brno.

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