Daily economic news from the Czech Republic: the Czech National Bank, BlackRock, UBS and Credit Suisse (28 April 2025)

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Overview of the latest economic events in the Czech Republic

As part of its strategic strengthening of its influence in European markets, the investment giant announced BlackRock Acquisition of a fund management company specialising in ESG investments worth over €500 million. The move is part of BlackRock's broader expansion in Europe and directly impacts the Czech market. As a dynamically growing economy in the heart of Europe, the Czech Republic has become one of the key points of this expansion, and BlackRock plans to expand its fund offering here as well as support innovative technology start-ups focused on sustainability and green technologies.

Swiss Banking Group UBS last year completed the takeover of its long-time rival Credit Suisse, one of the largest acquisitions in the modern history of the global financial sector. The transaction, which was worth more than CHF 3 billion, was a response to a deep crisis of confidence in Credit Suisse which, within months, had turned into an acute threat to the stability of the European banking system.

The merger of the two banks' portfolios means the consolidation of assets under management and the introduction of new investment products in the Czech environment, while UBS in Prague has already announced plans to expand its wealth management and corporate finance offerings. The takeover of Credit Suisse also brings a greater degree of stability to the regional banking industry, as UBS has declared its commitment to invest in technological development and digital platforms available to clients in the Czech Republic. 

Czech companies, especially in the technology and energy sectors, can expect easier access to investment capital thanks to the strengthening of BlackRock in the region, which could accelerate their expansion not only in European markets, but also globally. The acquisition also increases competition in the asset management industry in the Czech Republic, which should lead to a wider range of products and better conditions for Czech investors, thus contributing to further growth in financial literacy and investment activity of the population.

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Growth of the Czech economy

• GDP growth: The Czech Republic continues its trend of moderate economic recovery in 2025. The Czech Ministry of Finance forecasts gross domestic product (GDP) growth of 2,3 %.
• Drivers of growthA: The main pillars of growth remain:
  • Household consumption: boosted by real wage growth and stable employment.
  • Investment expenditureA: Especially in construction, transport infrastructure and new technologies.
• Outlook for 2026: OECD forecasts further acceleration of growth to 2.5 %, but warns of potential risks associated with global factors, such as weakening external demand or persistent geopolitical tensions.

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Inflation and wages

• Inflation: Annual inflation in April 2025 reached 2.7 %. This value was slightly above the Czech National Bank's inflation target (2 %), but represented a significant moderation in price dynamics compared with previous years.
• Payroll:
  • Average gross wage in Q4 2024 reached 49 229 Kč, which means a year-on-year increase of 4.6 %.
  • Real wages are rising again, supporting higher consumer activity and thus economic growth.

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Foreign investment

• Impact on the Czech economy:
  • Increasing employment in high-tech industries.
  • Strengthening export capabilities Czech Republic in the field of modern technologies.
  • Transition to a greener economy, which contributes to meeting the EU's climate policy commitments.

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Significant events outside the Czech Republic with global impact

• Geopolitical uncertaintiesA: Continuing conflicts and tensions in some regions of the world (particularly in Eastern Europe and the Middle East) continue to affect global markets.
• Technological innovationDescription : The ongoing boom in artificial intelligence, green technology and automation is transforming global manufacturing and business chains.
• Inflation and interest ratesA: Inflation is gradually declining in advanced economies (US, EU), but central banks are still maintaining a cautious monetary policy.
  • Initial market reactions suggest rather positive expectations for the continuation of current economic policies.

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