The Czech economy is set to gain momentum this year, with growth accelerating to 2.1 percent, up from last year’s modest 1 percent, according to the latest report from the Organization for Economic Cooperation and Development (OECD). The forecast, presented jointly by Prime Minister Petr Fiala and OECD Secretary-General Mathias Cormann at a Prague press conference on Tuesday, paints an optimistic picture for the Czech Republic’s economic trajectory.
Looking ahead to 2026, the OECD projects even stronger performance, with the gross domestic product (GDP) expected to expand by 2.5 percent. This upward trend signals a potential return to more robust economic health after a period of slower growth.
Inflation, which has been a persistent concern for Czech households, is projected to continue its downward trend. The OECD report anticipates average inflation of 2.3 percent this year, with further moderation expected next year when it should reach the Czech National Bank’s target of 2 percent.
The fiscal outlook is similarly encouraging, with public finance deficits gradually narrowing. The report forecasts this year’s deficit to decrease to 2.6 percent of GDP from last year’s 2.8 percent, with further improvement to 1.9 percent expected by 2026.
During the presentation, Cormann emphasized the importance of Czech Republic maintaining its course on budget consolidation. This fiscal discipline, he argued, is crucial for creating financial space to address anticipated expenditures related to the country’s aging population.
Prime Minister Fiala expressed agreement with the OECD’s recommendations. He highlighted fiscal challenges ahead, noting that future budgets will need to accommodate increased spending on defense and security measures—a reflection of changing priorities in an increasingly uncertain geopolitical landscape.