Two years of weak growth for Czech economy After last year’s stagnation, we expect GDP to grow by 0.8% this year and 1.5% next year, a weaker outlook than our previous forecast. Growth should be driven mainly by rising domestic demand but is likely to be held back by a slow recovery in household purchasing power and subdued industrial activity.

Inflation should fall below 2% in 2025 However, we expect it to remain in the upper half of the CNB’s tolerance band until the end of the year, averaging 2.5% in 2024. Next year, we forecast a decline to 1.8% on the back of still-weak consumer demand and lower energy and fuel prices. Core inflation should remain slightly above 2% in 2025, reflecting accelerating house price growth.