Overview of the latest economic events in the Czech Republic

Finance Minister Zbyněk Stanjura (ODS) announced that he will submit to the government draft state budget for 2026 with a deficit of approximately 280 miliard korun. A key item is to be defence spending of 2.2 % of GDP, as well as a repayable loan to EDU II for the construction of new units of the Dukovany nuclear power plant. This is seen as a strategic investment in the country's energy security. The Czech National Bank also pointed to the continued volatility of the koruna, which weakened on Thursday to 24,55 Kč/EUR a 21,15 Kč/USD. According to analysts at Komerční banka, the weakening of the koruna may continue to complicate import inflation, while Česká spořitelna estimates that the development of the currency will depend on the upcoming decision of the European Central Bank on interest rates.

Important news from the domestic economy is also the announcement ČEZthat it is preparing a new issue of green bonds worth 20 miliard korun. The aim is to finance renewables and develop the distribution network. Škoda Auto Meanwhile, it has published its first-half results, reporting sales growth of 12 %, mainly thanks to the export of models Enyaq a Fabia. The company remains an important player in the Penta Investments, which, according to Hospodářské noviny, is entering into negotiations to buy a development project in Prague worth over 3 miliardy korun.

Foreign investment

Korean car company Kia has officially launched the production of EV4 electric vehicles at its Slovakian plant, the only one in Europe. The move is seen as crucial to expanding the range of electric vehicles on the Central European market. The Czech industry could benefit from this move by engaging local suppliers such as Brano Groupwhich supplies components for production.

In the banking sector, it announced Raiffeisenbank entry into a new fund focused on digitalisation and fintech, with part of the investment going to Czech start-ups. The move is seen as strategic given the increasing competition from online platforms and the growing demand for fast, cashless solutions.

Another significant investment is the expansion of the Group's operations PPF, which, according to the agency. Bloomberg strengthened its stake in the fintech company Klarna. This step is aimed at expanding the possibilities in the field of deferred payments in European markets, which could have a positive impact on the Czech e-commerce market.

Significant events outside the Czech Republic with global impact

The United States and the European Union today signed a framework trade agreement confirming the July preliminary agreement. The key point is the introduction of a 15% tariff cap on most imports from the EU to the US. This mainly affects cars, pharmaceuticals, semiconductors and wood. In the case of automobiles, this is a significant reduction from the previous 27.5 %. The agreement has also been received with enthusiasm among European pharmaceutical giants, among which Germany's Bayer AGwhich announced that the move would give it better access to the US market.

At the same time, US President Donald Trump said that the 100 % tariff on imports of semiconductors from selected countries will not apply to the European Union. The move is also welcomed by technology companies such as the Dutch ASML, which is a key supplier of chip manufacturing technology.

In the Asian markets, Japan's Toyota has made a major push with the announcement of a new battery development partnership with China's BYD. Analysts expect the move to have an impact on the European automotive industry as well, as the pressure on the availability of raw materials for electric vehicles will increase.

This review shows that the Czech economy is going through a period of fundamental change - from the preparation of the state budget and investment in the energy sector, to major corporate transactions and the development of financial services, to the impact of global agreements that are changing the terms of international trade.

gnews.cz - GH

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