Czech Economy Grows by 1.9 Per Cent in the Second Quarter

The Czech economy remains on a growth path. Higher household consumption expenditure and strong investment in particular supported economic activity in the second quarter.

The Czech economy continued to grow in the second quarter of 2026. Gross domestic product (GDP) increased by 0.4 per cent compared with the previous quarter and by 1.9 per cent year on year. This is according to the refined estimate from the Czech Statistical Office (ČSÚ).

Among the main drivers of growth were household consumption expenditure and investment. Changes in inventories, by contrast, had a dampening effect.

Gross value added also increased by 0.4 per cent compared with the first quarter. Industry performed particularly well, growing by 0.9 per cent. The financial and insurance sector recorded growth of 2.7 per cent, while real estate activities increased by 0.6 per cent. Trade, transport, accommodation and food services, as well as construction, also recorded growth.

Year on year, gross value added increased by 1.8 per cent. In addition to industry, trade, transport, accommodation and food services, as well as the information and communication sector, made a particular contribution to growth.

Photo: Freepik

Consumption and Investment Increase

Total consumption expenditure increased by 0.5 per cent compared with the previous quarter and by 2.2 per cent over the year. Household expenditure rose by as much as 2.7 per cent year on year. Government consumption increased by 1.0 per cent.

Investment developed even more strongly. Gross fixed capital formation in the second quarter was 1.5 per cent above the level of the previous quarter and 7.1 per cent higher than a year earlier. Investment increased particularly in housing, other buildings and structures, as well as vehicles.

According to the ČSÚ, household consumption expenditure contributed 1.1 percentage points to annual GDP growth, while gross fixed capital formation contributed as much as 1.7 percentage points. Changes in inventories, by contrast, reduced growth by 1.3 percentage points.

Exports Rise by 3.3 Per Cent

Foreign demand also supported economic activity. Czech exports increased by 0.9 per cent in real terms compared with the previous quarter and by 3.3 per cent year on year. This was driven in particular by exports of motor vehicles, computers, electronic and optical equipment, as well as electrical equipment.

Imports remained unchanged compared with the first quarter, but were 3.7 per cent above the level recorded a year earlier. The surplus in foreign trade in goods and services reached CZK 99 billion at current prices, which was CZK 20.5 billion lower than in the second quarter of the previous year.

The price level, measured by the GDP deflator, increased by 1.0 per cent in the second quarter compared with the previous quarter and by 2.6 per cent year on year.