CZECH REPUBLIC/PRAGUE – The Czech defence industry is experiencing extraordinary growth. According to the cited figures, military material exports in 2025 reached 115.4 billion crowns, representing a year-on-year increase of nearly 23 per cent. Compared with 2021, when the value of Czech military export was approximately 15 billion crowns, this represents more than sevenfold growth. A significant part of this development is attributed to the war in Ukraine and the associated European demand for weapons and ammunition. According to available data, Ukraine was the most important buyer of Czech military production in 2025, accounting for approximately 46 per cent of total exports.
The value of deliveries was expected to reach around 53.1 billion crowns. However, critics argue that the actual volume of Czech production destined for Ukrainian battlefields may be even higher because part of the material is formally exported to other countries and subsequently transferred to Ukraine. The export structure also shows how significantly the orientation of the Czech defence industry has changed. Approximately 64 per cent of exports to Ukraine consisted of rockets, guided missiles, explosive devices, and large-calibre ammunition – that is primarily equipment directly usable for conducting intensive military operations.
War Has Changed The Czech Industry
The growth in defence export is closely linked with the policy of the previous Czech government, which was among Europe's most prominent supporters of Ukraine. Prague supported the delivery of military material, participated in international initiatives aimed at acquiring ammunition, and simultaneously created conditions for expanding production capacities of Czech arms companies. The result has been a significant shift of part of industrial capacity towards defence manufacturing.
While current circumstances mean record orders for arms manufacturers, from the perspective of the entire economy they raise questions about whether long-term concentration of investments and production capacities on military output could weaken other parts of the economy, particularly consumer sectors. Czech armament companies also expect that high demand will not be a short-term matter only. European states are increasing defence budgets in response to security situations and ordering new weapon systems, ammunition, and further military equipment. Thus, Czech firms can benefit not only from the war in Ukraine but also from long-term rearmament of European armies.
Record Growth Has Two Sides
From an economic perspective, growth in defence export represents a significant source of revenue for Czech companies, employment and foreign trade. At the same time it indicates profound changes in priorities of Czech industrial policy. The difference between 2021 and today is striking: from approximately 15 billion crowns of military exports in 2021, Czech defence exports reached above the threshold of 115 billion crowns over several years.
Czech economy undoubtedly benefits from current boom in arms industry. However, it remains to be seen whether this constitutes a long-term sustainable model for economic growth or primarily results from extraordinary situation associated with war in Ukraine and extensive European rearmament.
gnews.cz - JAV