Daily economic news from the Czech Republic: overview of the past 24 hours (3.1.2025)

Overview of the latest economic events in the Czech Republic
The Czech Republic has seen remarkable economic activity in recent days. Key developments include progress in infrastructure and renewable energy projects, signalling the government's focus on the long-term sustainability of the economy. In addition, the automotive industry is facing the challenges of transformation, with Volkswagen implementing a rigorous cost-cutting programme to maintain profitability as it transitions to electric vehicles.

Analysis of today's trends on the Czech stock market
The Prague Stock Exchange recorded a strong performance, with the PX index rising by 1 % to 1 778.2 points, reaching its highest level in 17 years. The growth was led by CEZ shares, which rose by 6 % thanks to optimism about reforms in the energy sector. On the other hand, banking group Erste saw a slight decline due to profit taking by investors. The PSE has now posted five straight weeks of growth, reflecting confidence in the stability of the Czech economy.

Foreign investment trends: 24-hour overview
Foreign investment continues to play a crucial role in the economic growth of the Czech Republic. Renewable energy remains a major attraction, with new international partnerships focusing on solar and wind energy projects. In addition, global automotive and technology companies are increasing their investments in the country, taking advantage of its strategic location and skilled workforce.

Significant events
Energy security remains a central issue, as stopping the supply of Russian gas via Ukraine poses a challenge for the region. The Czech government is accelerating efforts to secure alternative energy sources, including the expansion of nuclear power and cooperation with international partners on green energy initiatives.

Overview of the main macroeconomic indicators from the Czech Republic: January 2025

HDP Q3 1,4%
Latest GDP forecast by the Czech National Bank: (annual GDP change)
2024: 1.0 %
2025: 2.4 %
2026: 2, 4 %
HDP: 342 990 000 000 USD
GDP per capita: 31 370 USD
GDP purchasing power parity: 619 000 000 000 USD
Average gross nominal wage Q3 2024: 45 412 CZK (+7%)

Interest rate (December 2024): 4%
Inflation rate - consumer price index (annual) 2.8 %
Inflation rate - consumer price index (month-on-month) 0.1 %
Average annual inflation (2023): 10.7% (2022: 15.7%)
Industrial producer price index (annual) 1.7 %
Market services price index (annual) 3.7 %
Construction work price index (annual) 2.5 %
Agricultural producer price index (annual) 5.5 %
Money supply M3 (October 2024): 7 002 614 340 000 CZK
Money supply M3 (2002): CZK 1 339 928 850 000
(M3 reflects the total amount of money in circulation in the economy)

Deficit/surplus of public finances Q3 2024: -34 406 000 000 CZK
Consolidated public debt Q3 2024: CZK 3,449,937,000,000

Population 2024/9: 10 897 237
Total number of economic operators 2023: 2 800 294
Number of economic entities with identified activity 2023: 1 668 516
Number of natural persons in business 2023: 1 968 473

Sources:
Czech Statistical Office, official website accessed 3.1.2025, https://csu.gov.cz/
Czech National Bank, official website, accessed 3.1.2025, https://www.cnb.cz/
Czech National Bank - Monetary Policy Report - Autumn 2024 page 19, accessed 28.12.2024
International Monetary Fund, official website, accessed 30.12.2024, https://www.imf.org/

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photo: jws.de