The government has approved the draft state budget for next year with a deficit of 389 billion crowns. The Supreme Audit Office (NKÚ) warns that the national debt has reached 3.7 trillion crowns and may exceed 4.4 trillion next year. The Prague Stock Exchange slightly weakened on Monday. The speech by Kevin Warsh, head of the US Federal Reserve, at a symposium in Jackson Hole signals a continuation of high interest rates, which is affecting global markets. The turnover of Czech video game studios exceeded nine billion crowns annually in the last two years.
The government has approved the draft state budget for next year with a deficit of 389 billion crowns. This is the highest deficit since the pandemic year of 2021. Investments and defense spending will increase significantly, and the state will continue to pay fees for renewable energy sources. The opposition criticizes the proposal in light of continued economic growth and revenue losses following the abolition of the super-gross wage. President Petr Pavel does not plan to veto the bill.
The Supreme Audit Office warns that the national debt has risen to 3.7 trillion crowns and may exceed 4.4 trillion next year. Interest payments on the debt could then amount to up to 139 billion crowns annually. The NKÚ points to low economic productivity, expensive energy, and a lack of fundamental structural reforms. However, the Czech economy grew faster than the average for EU countries last year.
The Prague Stock Exchange fell by 0.36 percent on Monday to 2796.93 points. Most major stocks lost value, including shares of the energy company ČEZ and banks, which were traded in the largest volumes.
Kevin Warsh, head of the US Federal Reserve, delivered a hawkish speech at the traditional economic symposium in Jackson Hole on Friday. He stated that interest rates are the main tool for achieving his inflation mandate. The markets interpreted the speech as a signal that US interest rates will remain higher for longer, which strengthens the dollar and puts pressure on global capital flows, including those flowing to Central Europe.
The capacity of university dormitories is full this year weeks earlier than last year. Demand exceeds supply by an average of fifteen percent. Brno is experiencing the sharpest price increases among university cities - with an average price of 447 crowns per square meter, it is almost on par with Prague, which has a price of 462 crowns.
The turnover of Czech video game studios was higher than nine billion crowns in both 2024 and 2025. Last year, the revenues of developers increased sharply year-on-year by 68 percent to 9.19 billion crowns, while in 2025 they fell by 1.2 percent to 9.08 billion crowns. The number of gaming studios and employees in the industry continues to grow in the Czech Republic, but most companies employ fewer than ten people, according to the Association of Czech Game Developers.
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