The Czech National Bank assessed that full-year GDP growth is now more likely to be close to 2%, compared with its previous expectation of 2.2%, after weaker-than-forecast growth in the first half of 2026. GDP rose 0.4% quarter on quarter and 1.9% year on year in the second quarter, with an unexpectedly sharp decline in inventories reducing annual growth by 1.3 percentage points. Underlying domestic demand was stronger than the headline result. Fixed investment increased 7.1% year on year, its fastest growth in four years, while household consumption rose 2.7% and contributed 1.1 percentage points to GDP growth. Net exports made a broadly neutral contribution, and all sectors contributed to growth in gross value added.
2026-08-28Czech National Bank
Czech National Bank sees 2026 GDP growth closer to 2% after second-quarter inventory drag
The Czech National Bank said weaker first-half data increased the likelihood that 2026 GDP growth will be closer to 2%, below its previous 2.2% expectation. Second-quarter annual growth slowed to 1.9% as falling inventories offset strong fixed investment and household consumption.