Wednesday, 15 October 2025
The International Monetary Fund’s latest projections suggest that the Czech economy will continue to expand steadily but without major acceleration in 2025. According to the IMF’s most recent data, the country’s gross domestic product is expected to rise by around 1.6 percent next year, broadly in line with this year’s pace. This represents a moderate but consistent recovery following two years of subdued performance linked to inflationary pressures and weaker industrial output.
While the IMF’s assessment points to modest growth, the Czech Ministry of Finance remains somewhat more optimistic. In its latest forecast, released in August, the ministry expects GDP to increase by just over 2 percent in 2025, followed by slightly faster expansion in 2026. Both outlooks, however, acknowledge the same economic backdrop — stabilising prices, cautious consumer spending, and a slow rebound in investment after a difficult 2023.
Compared with its regional peers, the Czech Republic’s outlook sits roughly in the middle of the pack. The IMF sees slower momentum in Slovakia and Hungary, while Poland is projected to remain one of the stronger performers in Central Europe. Inflation in the Czech Republic is expected to stay close to the central bank’s 2 percent target, giving policymakers some breathing room but little reason for aggressive monetary easing.
Globally, the IMF’s autumn outlook anticipates moderate growth of about 3 percent this year and next, slightly above earlier expectations. The improvement reflects easing trade frictions and more stable financial conditions, though the Fund warns that uncertainty remains elevated.
In practical terms, the updated forecasts signal a cautiously positive year ahead for the Czech economy — steady, but without the robust upswing that many had hoped for at the start of 2025.
Source: CTK
