Tuesday, 2 December 2025
The Czech Chamber of Commerce now expects the economy to expand by 2.4 percent this year, revising its June outlook upward. The organisation presented the updated figures at a briefing, noting that domestic demand has been recovering faster than anticipated. A combination of rising household spending and continued wage growth is credited with supporting the improvement.
According to the Chamber, the current year’s performance is benefiting from stronger pay increases than previously assumed. Higher earnings, combined with easing inflation, are helping restore purchasing power after several years of decline. Chamber president Zdeněk Zajíček said that wage pressures appear to reflect efforts by employees to recoup earlier losses in real incomes. A tight labour market, he added, is also shaping wage negotiations.
The Chamber expects growth to moderate slightly in 2026, estimating a 2.3 percent expansion. The forecast suggests that while household spending will remain important, investment by companies should play a greater role next year. A temporary rise in unemployment to around 4.5 percent is also anticipated, though analysts involved in the forecast emphasise that this reflects movement between sectors rather than a broader downturn.
Looking ahead to 2027, the Chamber predicts an acceleration in economic activity, projecting growth of 2.7 percent. It expects that consumer demand and business investment will continue to reinforce each other, while the contribution of international trade could also turn mildly positive.
Other institutions have released more cautious projections. The Czech National Bank recently downgraded its outlook, now expecting the economy to rise by 2.3 percent this year and 2.4 percent in 2026. By contrast, the Ministry of Finance has slightly improved its own assessment and now anticipates 2.4 percent growth for 2025, followed by a 2.2 percent increase next year.
While the individual forecasts differ, all point to a gradual improvement in the Czech economy, supported by firmer household finances and a rebound in private investment.
