GDP Resources and Uses - 2. quarter of 2025

The refined estimate confirmed the ongoing growth of the Czech economy. The gross domestic product (GDP) adjusted for price effects and seasonally adjusted[1] increased by 0.5% compared to the previous quarter. In the year-on-year comparison, it increased by 2.6%.

The gross value added (GVA) increased in the Q2 2025 by 0.5%, quarter-on-quarter
(q-o-q), and by 2.8%, year-on-year (y-o-y). Mainly a group of economic activities of trade, transportation, accommodation and food service activities contributed to the q-o-q growth (an increase by 1.7%). Industry and construction also had a positive contribution (+0.3% and +1.9%, respectively). On the other hand, a negative influence came from financial and insurance activities (-4.6%).

The y-o-y development of the GVA (+2.8%) was positively influenced especially by industry +0.6 percentage point (p. p.; an increase by 2.2%), by a group of economic activities of trade, transportation, accommodation and food service activities +0.7 p. p. (an increase by 3.8%), and by information and communication +0.5 p. p. (an increase by 6.8%).

“On the demand side, increasing final consumption expenditure and a change in inventories were the main factors of the q-o-q as well as of the y-o-y growth of the gross domestic product. The influence of the international trade balance was negative,” Vladimír Kermiet, Director of the National Accounts Department of the Czech Statistical Office (CZSO), comments on the data.

The following had a positive influence on the year-on-year GDP growth (+2.6%): final consumption expenditure of households +1.2 p. p. [2], final consumption expenditure of general government +0.4 p. p., and a change in inventories +1.4 p. p. A negative influence came from the gross fixed capital formation (-0.3 p. p.) and international trade balance (-0.2 p. p.).

Final consumption expenditure increased by 1.1%, q-o-q. In the y-o-y comparison, it increased by 3.1%. Final consumption expenditure of households increased by 1.0%, q-o-q, and by 3.4%, y-o-y. Final consumption expenditure of general government increased by 1.2%, q-o-q, and in the y-o-y comparison it increased by 2.2%.

Gross fixed capital formation increased by 0.5%, q-o-q; in the year-on-year comparison, it decreased by 0.2%. A y-o-y decrease mainly occurred in investments in dwellings and in other machinery and equipment, whereas mainly investments in other buildings and structures and in transport equipment increased. The change in inventories[3] was CZK +36.7 billion, which was by CZK 27.2 billion more compared to the corresponding quarter of the previous year.

The international trade balance of goods and services at current prices reached the value of CZK 118.8 bn; thus it was by CZK 11.0 bn lower than in the corresponding period of the previous year. Exports increased in real terms by 0.3%, q-o-q, and in the y-o-y comparison it increased by 4.2%. Imports increased by 1.5%, q-o-q, and in the y-o-y comparison it increased by 6.0%.

As for the price development in the Q2 2025, the total GDP deflator increased by 1.3%, q-o-q, and by 3.3%, y-o-y.

The volume of labour costs³ increased by 8.0%, y-o-y, in the Q2 2025.

Total employment[4] increased by 0.5% compared to the previous quarter and in the y-o-y comparison it increased by 1.0%. The number of hours worked in total increased by 0.7%, quarter-on-quarter, and in the y-o-y comparison it increased by 1.5%.