Overview of the latest economic events in the Czech Republic

Na Pražské burze there was a slight weakening. The PX index fell 0.14 percent to 2,647.18 points. The stock exchange was dragged down mainly by losses in shares of the banking group Erste, zbrojovky Colt CZ a banky Moneta Money Bank. The markets are reacting to the persistent geopolitical tensions in the Persian Gulf region and the uncertainty surrounding energy prices, which is also affecting Czech companies dependent on exports and industrial production.

Ministry of Finance in the new price bulletin: the maximum permitted fuel prices fell on Tuesday. A litre of diesel will be priced at a maximum of CZK 44.36 at petrol stations, CZK 1.56 less than on Monday, and a litre of petrol at a maximum of CZK 41.67, 28 cents less. These are the lowest prices so far since the price caps were introduced. The authority calculates the prices from a combination of wholesale company indices Čepro, Orlen a MOL a burzovních kotací Platts. Inspections of petrol stations have not yet shown any breaches of the rules and the regulation will remain in force at least until the end of April.

The automotive industry has responded Škoda Auto, whose global sales grew 14 percent year-on-year to 271,900 vehicles in the first quarter of 2026 - with the parent group Volkswagen reported a four per cent decline in total sales to around 2.05 million vehicles in the same period, mainly due to weaker demand in China and North America. Results Škody thus strengthening the image of Czech manufacturing as a competitive segment within the global automotive industry.

Foreign investment

In the pharmaceutical sector, the US company continues Merck in a tender procedure for the takeover of a biotechnology company Terns Pharmaceuticals for $53 per share in cash, for a total value of approximately $6.7 billion. Merck launched a formal share buyback offer on April 7 and the transaction is expected to close in the second quarter of 2026. Merck expands its oncology portfolio with the acquisition, in particular with TERN-701 for the treatment of chronic myeloid leukemia.

In the chip industry, analysts are watching the regulatory process around the planned takeover of the company Silicon Labs ze strany Texas Instruments for $7.5 billion, or $231 a share in cash. It is the largest acquisition Texas Instruments od koupě National Semiconductor in 2011. The intent of the transaction is to strengthen TI's position in wireless and to shift production Silicon Labs from Asian manufacturing plants to our own U.S. plants Texas Instruments. Shareholder approval is being voted on 30 April; the HSR regulatory waiting period expires on 20 April, with the transaction expected to close in the first half of 2027.

In the US banking sector, companies received Burke & Herbert Financial Services a LINKBANCORP all regulatory approvals necessary to complete their previously announced merger. The merger of the two financial institutions is expected to take place on May 1, 2026 and will strengthen their position in the U.S. regional banking market.

Significant events outside the Czech Republic with global impact

The situation in the Strait of Hormuz remains the biggest economic issue with a direct impact on the Czech and European economy. The key waterway for global oil and gas transport, used by some 135-140 ships a day before the war, has been virtually blocked since the end of February, when the US and Israel launched military operations against Iran. A two-week ceasefire brokered by Pakistan, in force since 8 April, has not resulted in a resumption of shipping traffic - only a fraction of the pre-war level has passed through the strait since then.

U.S. Vice President J.D. Vance stressed that the U.S. expects Iran to make progress in opening the Strait and the ball is now in Iran's court.

Šéfka Evropské komise Ursula von der Leyen described the restoration of free navigation in the Strait of Hormuz as a matter of fundamental importance for the EU. At an emergency meeting of the EU executive on 13 April, commissioners noted that the 44-day conflict had increased the EU's fossil fuel import bill by €22 billion. The European Commission intends to present both immediate and long-term structural measures to reduce energy dependence at an informal summit in Cyprus next week.

Meanwhile, the German government of Chancellor Friedrich Merz has announced a temporary reduction in the energy tax on diesel and petrol by around 17 cents per litre for two months. The measure is intended to alleviate the impact of high fuel prices on consumers and industry. For the Czech economy, which is strongly linked to German industrial demand, this is a development with direct implications for export orders.

The Israeli-American conflict with Iran has also forced Ministry of Finance of the Czech Republic to a correction in the outlook for Czech GDP, and with the risk of a prolonged conflict materializing, economists warn of further energy prices and a possible deterioration in business sentiment. MEP Jan Hrnčíř (SPD) estimates that the slowdown in growth could cause a shortfall in state revenues of CZK 25-35 billion and trigger the need to amend this year's deficit budget before the summer.

gnews.cz - GH

Pozn.: YTD (Year-to-Date) comparison of results since the beginning of this year; YoY (Year-over-Year) comparison with the same period last year

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