Overview of the latest economic events in the Czech Republic
The Czech economy closed July on a positive note. Gross domestic product grew by 2.1 % year-on-year in the second quarter, the Czech Statistical Office announced today. Industrial production and exports, particularly in the electrical engineering and automotive industries, remain the key drivers of growth. The company Škoda Auto reported an 8.3 % year-on-year increase in exports, with demand for electric models in Germany and the Netherlands exceeding expectations.

Stocks did well on the stock exchange ČEZwhich gained 2.7 % following the announcement of the planned buyout of its stake in the Romanian company Hidroenergia. The move is expected to strengthen the Czech power sector's position in Southeast Europe. Other important news is the agreement between Pilsner Urquell and the Belgian distribution group Delbier for exclusive cooperation in the Benelux markets.

Foreign investment
The Czech Republic has seen significant FDI inflows. Korean technology firm LG Energy Solution announced an investment of CZK 1.2 billion to expand production capacity at its plant in Nosovice. The project is expected to create up to 800 new jobs and increase battery cell production by 25 % by 2027.

Also an American software company Oracle opened a new development centre in Brno, where it plans to employ over 300 IT specialists. The CZK 950 million investment is part of a broader strategy to expand operations in Central Europe. The Ministry of Industry and Trade has confirmed that it is negotiating with four other foreign investors to enter the Czech market, with a focus on artificial intelligence and semiconductors.

Significant events outside the Czech Republic with global impact
On the global scene, the financial market experienced a slight turmoil after the release of US GDP data, which grew by only 1.1 % in the second quarter. The weaker performance of the world's largest economy hit export-oriented markets, including the Czech Republic. The zloty and forint weakened slightly, while the Czech koruna remained stable at CZK 24.40/EUR.

The commodities market saw a significant drop in oil prices, with a barrel of North Sea Brent falling to $77. This development had a positive impact on the costs of Czech transport companies, including České dráhywhich expects annual savings in operating costs of 5 %. RegioJet said it was considering reducing the prices of some domestic routes as a result of cheaper fuel.

In terms of acquisitions, a significant transaction was announced between Komerční bankou and Austrian company FinPay, which bought 60% stake in Czech fintech company SmartWallet. The transaction, worth CZK 430 million, is aimed at strengthening digital payment tools on the domestic market.

Overall, the Czech economy remains stable in July 2025, with slightly positive growth signals and rising foreign investor confidence. The combination of technology investment, expansion of domestic firms and strengthening exports creates the conditions for further economic acceleration in the second half of the year.

gnews.cz - GH

Current exchange rates according to the CNB and Google Rates

CurrencyCzech National Bank exchange rate (CZK)Google Rate (CZK)
EUR24,61~24,59
USD~21,12~21,28
PLNN/A~5,75
HUF~0,06185~0,0615
GBP~29,03~28,41
CHF~26,30~26,43
CNY~2,98~2,9656
JPYN/A~0,1439
RUBN/A~0,2619

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