Published by Global Banking & Finance Review®
Posted on May 30, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleCzech Republic's economy grew 2.2% in Q1, driven by investment and exports, but US tariffs pose a risk, according to the central bank.
PRAGUE (Reuters) -Czech Republic's 2.2% year-on-year economic expansion in the first quarter was above the central bank's forecast of 2.1% mainly thanks to more resilient investments and exports, but the uncertainty over the impact of U.S. tariffs cloud the outlook, the central bank said on Friday.
The bank said increase in household consumption -- which is the overall growth driver -- was lower at 2.5% than its forecast of 3.3%.
Investment dropped year-on-year but less than expected and grew in quarterly terms, while exports were also more resilient than expected, the bank said.
"For both investment and exports, however, the question is how much the positive developments were due to one-off stockpiling by firms ahead of an expected rise in trade barriers," the bank said.
It said that while investments and exports would be the first to be hit by large tariff barriers, continued strong household spending should put full-year 2025 growth at around 2%.
(Reporting by Jan Lopatka)
The Czech Republic's economy grew by 2.2% year-on-year in the first quarter.
Household consumption increased by 2.5%, which was lower than the central bank's forecast of 3.3%.
The growth was mainly driven by resilient investments and exports, despite a drop in investment year-on-year.
The central bank questioned whether the positive developments in investment and exports were due to one-off stockpiling ahead of expected trade barriers.
The central bank projects that continued strong household spending will keep full-year 2025 growth around 2%.
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