Czech National Bank says first quarter GDP growth slowed to 2.2% as imports surged

The Czech National Bank said the Czech economy continued to expand in the first quarter of 2026 but at a slower pace than in late 2025, with gross domestic product rising 0.2% quarter on quarter and 2.2% year on year. The outcome was below the central bank’s Spring 2026 Monetary Policy Report forecast of 2.5% annual growth, with the main downside surprise coming from an 8.2% year-on-year rise in imports that more than offset still solid domestic demand. Consumption remained the main driver of growth, with household spending up 3.4% year on year, while fixed investment rose 7.3%, its strongest increase in four years, supported by higher spending on buildings, machinery and vehicle fleet renewal. Exports also accelerated, rising 5.8% year on year, but net exports still subtracted 1.2 percentage points from GDP growth because import growth was stronger. A further decline in inventories reduced overall GDP growth by 0.5 percentage point, while gross value added growth remained broad-based across sectors, though it eased in industry, construction and trade. The central bank said the weaker first quarter result, together with the risk of adverse effects from high energy prices later in the year, increases the likelihood that full-year GDP growth will come in below its earlier 2.5% expectation.