Overview of the latest economic events in the Czech Republic
The Czech economy is facing serious challenges in industry and employment. A striking example is the situation at Spolana Neratovice, which recorded a loss of almost CZK 7.8 billion in 2024. Compared to 2023, when the loss was 1.3 billion, the drop is dramatic. This is mainly due to high energy prices and inflation. The company, which is part of the Orlen Unipetrol group, announced at the beginning of this year that it would lay off about 500 employees. Production is gradually being cut back and only 150 workers are to remain in the company.
Another significant step is the announcement by the French group Savencia that it will cease operations at its dairy in Hodonín at the end of February 2026. The production of processed cheese, including the well-known Apetito brand, will move to Germany. This change will affect 100 employees and comes at a time when the Hodonín region is facing the highest unemployment rate in the South Moravia region (6 % in May). Savencia promises to help find new jobs.
In addition to these reports, Czech industry is increasingly focusing on energy transformation. CEZ has signed a new agreement with the German company Siemens Energy to supply components for the expansion of the Dukovany nuclear power plant. The CZK 3.2 billion contract is of strategic importance for the Czech Republic's energy self-sufficiency and strengthens cooperation between the two countries in the nuclear energy sector.
Foreign investment
The interest of foreign investors in the Czech market continues despite deteriorating macroeconomic indicators. The American giant Amazon has announced the expansion of its distribution centre near Kojetín in the Přerov region. The project, worth CZK 1.1 billion, is expected to bring up to 500 new jobs and become a key logistics hub for Central Europe.
Japanese carmaker Toyota will expand the production lines at its Cologne plant with a new platform for electric cars. The investment will amount to CZK 4.5 billion and is part of a broader strategy to electrify the production programme. As part of the deal, it will work with Czech suppliers such as the Brano Group and Plastika Nitra, strengthening regional industrial chains.
From China comes news of an investment by CATL, a world leader in battery manufacturing. The company will open a research centre in Ostrava in 2026 focused on the development of advanced battery systems. The value of the investment will exceed CZK 800 million. The strategic partner will be the University of Mining and Metallurgy - Technical University of Ostrava.
Significant events outside the Czech Republic with global impact
New trade tensions between the US and Asian markets dominate the global scene. According to an announcement by US ex-president Donald Trump, a tariff of 25 % will be imposed on imports from Japan and South Korea from 1 August 2025. Although the European Union remains excluded for the time being, the situation increases global trade uncertainty. South Korea has already started intensive negotiations with Washington to mitigate the impact of the new measures.
In Germany, a major acquisition was made - Deutsche Bank bought the Swiss fintech company Avaloq for €5.3 billion. The deal is crucial for the digital transformation of the banking sector and strengthens Deutsche Bank's position in wealth management.
France's LVMH has struck a deal to take over British luxury brand Burberry. The value of the acquisition amounts to £8.6 billion. The merger aims to expand the group's portfolio with a stronger position in the UK and Asian fashion markets.
In the United Arab Emirates, the Mubadala Fund invests in the US pharmaceutical company Gilead Sciences. The $3.9 billion investment is intended to support the development of new antivirals, including against future pandemics.
Finally, South Korea's Samsung Electronics announced the acquisition of Dutch AI firm BrainChip for €2.1 billion. The aim is to boost research into artificial intelligence for mobile devices.
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