The Czech economy grew by 2.4% in the first quarter of 2025 compared to the same period the previous year, according to updated data from the Czech Statistical Office. Household income and consumption also rose slightly, while the savings rate declined.
The financial situation of Czech households improved slightly in the first quarter of 2025. According to the Czech Statistical Office (ČSÚ), real monetary and non-monetary transfer income rose by 0.3% quarter-on-quarter, seasonally adjusted. Real per capita consumption also increased by 0.3%. The savings rate, however, fell significantly by 1.5 percentage points to 18.3% – lower than in the previous year, but still above the long-term average.
“Both household income and consumer spending have increased in real terms,” said Vladimír Kermiet, Head of the National Accounts Department at ČSÚ. “Income from employment rose by 2.8% year-on-year.” Average monthly income from employment stood at 50,124 CZK(approximately 2,000 EUR) in the first quarter.
The household investment ratio remained unchanged from the previous quarter at 10.2%, but was 0.6 percentage points lower than a year earlier.
Corporate investment declines, profit ratio stable
The picture for non-financial corporations was similarly mixed. The profit ratio remained stable at 43.4% compared to the fourth quarter of 2024, though it was 1.2 percentage points below the level recorded a year earlier. The investment ratio fell by 1.7 points to 26.2% compared to the previous quarter, marking a year-on-year decline of 0.8 percentage points. Companies’ wage costs rose by 7.3% over the year.
Moderate growth – GDP up 0.7% quarter-on-quarter
The release also included an updated estimate of gross domestic product (GDP) for the first quarter of 2025. According to the data, the Czech economy grew by 0.7% compared to the previous quarter and by 2.4% year-on-year.
At the same time, the Statistical Office revised the national accounts for 2023 and 2024. The quarterly data have been adjusted accordingly.
