The Czech economy continued to expand moderately in the third quarter of 2025. While households benefited from slightly higher incomes and consumption, companies faced declining profit margins.
In Q3 2025, the Czech economy maintained its moderate growth. Gross Domestic Product (GDP) rose by 0.8 per cent compared with the previous quarter and by 2.8 per cent year on year. Private households enjoyed modest increases in income and consumption, whereas companies experienced shrinking profit margins.
Households: Consumption Drives Growth
According to the Czech Statistical Office (ČSÚ), households’ cash and in-kind receipts rose by 0.1 per cent in real terms, seasonally adjusted, compared with the previous quarter. Real per capita consumption increased by 0.3 per cent over the same period, while the savings rate fell slightly by 0.1 percentage points.
“In the third quarter, real household incomes rose by 0.3 per cent year on year, while per capita consumption grew significantly faster, by 2.8 per cent. This continues the trend of declining savings rates back to pre-crisis levels,” said Vladimír Kermiet, Director of the National Accounts Department at ČSÚ.
The average monthly income from dependent employment stood at 51,311 koruna in Q3, a real increase of 1.2 per cent on the previous quarter and 3.9 per cent year on year. The household savings rate fell to 18.4 per cent, while the household investment rate rose slightly to 10.6 per cent.
Companies: Profit Margins Decline
The profit margin of non-financial companies fell to 43.5 per cent in Q3, down 0.1 percentage points from the previous quarter and 0.3 percentage points year on year. At the same time, total wage costs rose by 7.3 per cent compared with the previous year. The investment rate increased by 0.3 percentage points from the previous quarter to 26.8 per cent, but remained 1.1 percentage points below the level recorded a year earlier.
