Despite elevated geopolitical uncertainty, the Czech economic outlook remains favourable We expect GDP to grow by 2.1% in 2026 and 2.6% in 2027. Domestic demand should remain the key driver, including resilient household consumption, ongoing investment activity and expansionary fiscal policy. A tight labour market should continue to underpin robust wage growth.

Gradual pass-through of higher energy prices is likely to push inflation close to 3% by year-end We forecast inflation to average 2.1% in 2026 before rising to 2.6% in 2027. Core inflation should remain elevated in both years due to resilient domestic demand, the delayed effects of the conflict in the Middle East, and further growth in wages and housing costs.