IMF Lowers Czech Republic's 2026 Growth Forecast to 1.8 Percent

The Czech economy is expected to grow more slowly this year and next than previously anticipated. The International Monetary Fund has lowered its forecast for 2026 from 2.2 to 1.8 percent.

According to the latest forecast from the International Monetary Fund (IMF), the Czech economy is losing significant momentum compared with the previous year. In 2025, gross domestic product (GDP) grew by 2.6 percent. For 2026, the IMF now expects growth of just 1.8 percent, before accelerating slightly to 1.9 percent next year.

Compared with its spring forecast, this represents a downward revision of 0.4 percentage points for 2026 and 0.3 percentage points for 2027. The new figures reflect more cautious expectations for the Czech Republic's future economic development.

Czech Finance Ministry Remains Slightly More Optimistic

The latest IMF forecast is therefore below the expectations of the Czech Ministry of Finance. In August, the ministry also revised its growth estimate downwards, although only from 2.1 to 1.9 percent for the current year.

The ministry cited the economic consequences of the conflict in the Middle East as a key reason for the weaker outlook. In particular, rising energy and fuel prices, along with uncertainty in international trade, are weighing on economic activity.

For 2027, the Ministry of Finance continues to expect significantly stronger economic growth of 2.4 percent. By contrast, the IMF forecasts a considerably slower recovery of 1.9 percent.

Czech Republic Growing More Slowly Than Poland, but Faster Than Slovakia

In a Central European comparison, the IMF's new forecast for the Czech Republic is also relatively cautious. While the Czech economy is expected to grow by 1.8 percent in 2026, the Fund forecasts significantly stronger GDP growth of 3.4 percent for Poland.

Hungary is also slightly ahead of the Czech Republic, with forecast growth of 1.9 percent. Slovakia, by contrast, is expected to perform considerably worse, with economic growth of just 0.8 percent.

Global Economy Proves More Resilient

While the IMF has revised its forecast for the Czech Republic downwards, the outlook for the global economy is slightly more favourable. The organisation now expects global economic growth of 3.1 percent in 2026, compared with its July forecast of 3.0 percent. For 2027, it predicts an acceleration to 3.4 percent.