Overview of the latest economic events in the Czech Republic

The Czech economy ended 2025 in very good shape. Czech Statistical Office (CSO) confirmed the revised estimate of gross domestic product growth for the third quarter of 2025. GDP grew by 2.8% year-on-year, which is the fastest pace since the second quarter of 2022. Compared to the previous quarter, the economy strengthened by 0.8% quarter-on-quarter. According to statistics, domestic demand, business investment and stable export growth were the main contributors to growth, despite persistent geopolitical risks.

The energy sector played a significant role in the domestic economy. Temelín and Dukovany nuclear power plants generated a record 32.066 TWh of electricity in 2025, which is the highest figure in the history of the Czech Republic. This production would cover approximately half a year's consumption for the entire country. However, a slight decline in production is expected in 2026 due to planned shutdowns related to fuel replacement.

The banking sector is entering the new year with stable prospects. Analysts expect interest rates to remain at their current levels, which should support lending activity by businesses and households and contribute to further economic growth.

Foreign investment

A significant transaction on the Czech real estate market is the sale of part of a strategic brownfield site in Prague's Bubny district. CPI Property Group Czech entrepreneur Radovan Vítek sold half of the land to the group. J&T at book value. Both companies established a joint venture. JV Bubny, which will be responsible for developing this extensive urban site. This is one of the most significant real estate transactions on the domestic market at the turn of the year.

Strong activity in mergers and acquisitions continues at the global level. The American company WGAN Holdings Inc. completed the acquisition of the digital platform We Get Around Network, thereby expanding its activities in the field of online communities and technology services.

The pharmaceutical sector took another significant step forward when Auro Pharma, subsidiary Aurobindo Pharma, took over the non-oncology activities of the company Khandelwal Laboratories. The acquisition strengthens Auro Pharma's position in the fast-growing generic drug markets.

In the field of gastronomy, the following companies have joined forces Sapphire Foods India a Devyani International, creating the largest fast food chain operator in India. The transaction confirms the trend of consolidation in the global restaurant franchise segment.

A takeover is being prepared in the financial sector. BankFinancial Corp bankovní skupinou First Financial Bancorp, which is to be completed in early January 2026 and will expand the regional reach of the newly formed banking entity.

Significant events outside the Czech Republic with global impact

The global automotive industry delivered some significant news. Chinese car manufacturer BYD increased sales of electric cars to a record 2.26 million vehicles in 2025, likely surpassing the US for the first time in annual sales. Teslu. This result confirms the growing influence of Chinese manufacturers on the global electric vehicle market.

Oil on world markets Brent opens the new year slightly higher and is hovering around 61–61.3 USD per barrel, zatímco American light crude oil WTI trades at approximately 57–58 USD per barrel, reflecting the opening of trading in 2026 after a significant decline in 2025. This price growth is rather gradual and comes after both major oil benchmarks recorded largest annual decline since 2020, almost around 20 % due to excess supply and weaker demand. Analysts expect that in the first quarter of 2026, the price of Brent will likely be pushed down towards an average of approximately 55 USD za barel, if the supply surplus persists.

gnews.cz - GH

tradingeconomics.com