All analysis from category Macro comment
Macro comment
GDP in Q4: Slight slowdown at the end of the year
The pace of economic growth slowed slightly at the end of the year, but in the context of recent years and current conditions in the global economy, the current development of the Czech economy can be assessed positively. In the fourth quarter of last year, GDP increased by 0.5 percent compared to the previous quarter and was 2.4 percent higher year-on-year. For 2025 as a whole, GDP grew by 2.5 percent.
Macro comment
Retail in November: Recovery at the end of the year
Domestic demand remains strong and continues to be a key pillar of GDP growth for the second year running. Retail sales rose by 0.8 percent month-on-month in November and by 4.6 percent year-on-year.
Macro comment
Unemployment in December: Seasonal increase and structural problem
As usual, the labor market tightened somewhat in December. However, behind the usual seasonal fluctuations lies the continuing growth of structural unemployment. The number of job seekers rose to 354,314 at the end of last year, which is almost 48,000 more than a year ago. The share of unemployed people in the population rose to 4.8 percent, the highest figure since February 2017.
Macro comment
Industrial production in November: A positive surprise
There seem to be increasing signs of a revival in the Czech economy. While domestic demand has already recovered from the inflation crisis, industry remained a weak spot in the economy. However, it unexpectedly picked up in November last year. Month-on-month, industrial production volume increased by 2.4 percent, and the year-on-year growth rate accelerated to 5.7 percent. We last saw similar results in 2022.
Macro comment
Consumer prices in December: Stable low inflation
Inflation ends 2025 just above the central bank's target. It was last lower at the end of 2018. In December, the consumer price index fell by 0.3 percent month-on-month, with year-on-year inflation reaching 2.1 percent. The result is a combination of falling food and energy prices.
