Czechia economy at a glance

Latest figures for Czechia: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Czechia on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.4%	October 2026	2.5% September 2026
Core inflation (excluding food and energy)	3.0%	September 2026	2.8% August 2026
Real GDP growth (year on year)	1.6%	Q3 2026	1.8% Q2 2026
Policy rate (Czech National Bank)	4.00%	November 2026	3.75% October 2026
Unemployment rate	2.8%	September 2026	3.1% August 2026
10-year government bond yield	5.24%	September 2026	4.91% August 2026
Manufacturing PMI (S&P Global Czech Republic Manufacturing PMI)	55.0	October 2026	53.5 September 2026
Retail sales (year on year)	4.1%	September 2026	4.4% August 2026
Industrial production (year on year)	2.6%	August 2026	3.1% July 2026
Wages (year on year)	6.4%	Q2 2026	7.4% Q4 2025
House prices (year on year)	8.6%	Q2 2026	10.0% Q1 2026
Stock market (PX (Prague Stock Exchange))	2,675	September 2026

Questions and answers

What is the inflation rate in Czechia?

Czechia's annual inflation rate was 2.4% in October 2026, down from 2.5% in September 2026.

What is the interest rate in Czechia?

The Czech National Bank 2-week repo rate is 4.00% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is Czechia's economy growing?

Czechia's real GDP grew 1.6% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 1.8% in 2026 and 1.9% in 2027.

What is the unemployment rate in Czechia?

Czechia's unemployment rate was 2.8% in September 2026, down from 3.1% in August 2026.

What is Czechia's 10-year government bond yield?

Czechia's 10-year government bond yield averaged 5.24% in September 2026.

How much government debt does Czechia have?

Czechia's government debt is about 44.2% of GDP (latest annual figure), with a budget deficit of 2.2% of GDP.

What is Czechia's credit rating?

Czechia's sovereign credit ratings: S&P AA-, Moody's Aa3, Fitch AA-.

What is the VAT rate in Czechia?

Czechia's standard VAT rate is 21% (2026 rules).

What is the corporate tax rate in Czechia?

Czechia's corporate income tax rate is 21.0% (2026 rules).

Who leads Czechia?

Czechia is led by Prime Minister Andrej Babiš (ANO; coalition with SPD and the Motorists, in office since 9 Dec 2025); President Petr Pavel (head of state). Next election: Presidential election due early 2028; next Chamber of Deputies election due by autumn 2029.

Outlook

Mainstream forecasts see moderate growth: the IMF projects 1.8% in 2026 and 1.9% in 2027, S&P 2.0% and 2.4%, and the CNB's August forecast 2.2% for 2026. Household spending, real wage gains of about 4% and a strong manufacturing PMI (around 53–54) are the main supports. The main risks are fiscal slippage, with general-government deficits above 3% of GDP in 2027 per Fitch and the Fiscal Council, and energy-driven inflation from the Iran conflict, which could prompt another CNB hike in November. A downturn in European car demand or German industry is the main external downside, while the S&P positive outlook signals a possible upgrade if policy stays prudent.

Why Czechia matters for the world economy

Czechia is one of Europe's most open, export-driven economies and a core part of the German-centred manufacturing network: Germany takes roughly 30% of its exports, and cars and parts from Škoda (VW), Hyundai and Toyota plants plus thousands of suppliers make it a key link in the EU auto supply chain. Czech output therefore moves with German industrial demand and also affects neighbouring Slovakia, Poland and Austria through cross-border supply chains. The koruna and the CNB's large reserves (about USD 180bn) make CZK one of the more liquid CEE currencies. A CNB that is tightening while the ECB also raises rates is a regional signal for CEE monetary policy. As a net energy importer, Czechia is directly exposed to the 2026 oil shock, which pushed fuel prices up nearly 38% on the year.

Politics

Andrej Babiš's ANO governs with two smaller nationalist parties (SPD and the Motorists) and a comfortable lower-house majority. On 1 Oct 2026 it defeated an opposition no-confidence motion over rising debt and security policy, 83 votes to the 101 needed. In the 9–10 Oct local and Senate elections ANO's municipal vote share fell to about 13%, and the opposition kept control of the Senate, which can delay laws and block constitutional changes. For the economy, the main issue is fiscal loosening: on 22 Oct the lower house approved in first reading a 2027 budget with a CZK 386bn state deficit, and the Fiscal Council puts the general-government gap near 3.7% of GDP.

System: Unitary parliamentary republic.

Economy and taxes

GDP: US$391 billion
Population: 10.9 million
Government debt: 44.2% of GDP
Budget balance: −2.2% of GDP
Current account: 0.7% of GDP
Exports: 66.9% of GDP
Main exports: Cars and vehicle parts, machinery and electrical equipment, computers and electronics, metals and metal products, chemicals and plastics
Top export markets: Germany (30.0%), Slovakia (7.3%), Poland (6.6%), France (4.5%), United Kingdom (4.4%)
IMF growth forecast: 1.8% in 2026, 1.9% in 2027
IMF inflation forecast: 2.1% in 2026, 2.8% in 2027
Currency: CZK
Freelancer tax: A self-employed person earning the average wage (CZK 590,580 a year) pays about 32.6% of it in income tax and social contributions (2026 rules)
Top income tax rate: 23.0%
Gold reserves: 87.4 tonnes (September 2026)
Energy self-sufficiency: 52% (2024)

Recent news

5 November 2026 Czech National Bank raises its key rate to 4.00% in a 4-3 vote Czech National Bank
The Bank Board lifted the two-week repo rate by 0.25 points to 4.00%, its second hike of 2026 after June; three of the seven members wanted no change. Inflation has been close to the 2% target since January 2024, but the new forecast sees it rising temporarily in late 2026 and early 2027. The board said it is responding to the risk of second-round effects from higher energy prices, with core inflation elevated, a tight labour market and fast credit growth, and will consider further steps very carefully.
4 November 2026 Czech inflation eases to 2.4% in October, a day before the rate decision CZSO via Trading Economics
A preliminary CZSO estimate put annual inflation at 2.4%, down from 2.5% in September and below the 2.5% consensus. Food prices fell further, and energy, services and goods prices rose a little more slowly.
2 November 2026 Czech factory PMI jumps to 55, its highest since early 2022 S&P Global via Trading Economics
S&P Global's manufacturing PMI rose to 55.0 in October from 53.5, beating forecasts, as new orders and exports grew at the fastest pace in years and hiring was the strongest since January 2022. Chip shortages slowed deliveries.
30 October 2026 Czech economy grows 0.5% in the third quarter on consumer spending CZSO via Trading Economics
A preliminary CZSO estimate showed GDP up 0.5% on the quarter, faster than 0.3% in Q2, and 1.6% on the year. Household spending and net exports drove growth, while investment held it back.
26 October 2026 Czech economic sentiment slips in October as industry confidence drops CZSO
CZSO's composite confidence indicator fell 1.6 points to 97.9, with business confidence down 1.8 points to 96.6 and industry down 5.6 points. Consumer confidence eased 0.8 points to 104.3 as more households expected the economy to worsen over the next year.
22 October 2026 Czech lower house backs 2027 budget with a CZK 386bn deficit in first reading Echo24 / ČTK
93 coalition deputies approved next year's headline figures: revenue of CZK 2.199tn, spending of CZK 2.585tn and a deficit of CZK 386bn, up from CZK 310bn this year. The opposition failed to send the draft back, and the deficit can no longer be changed in later readings.

Headlines and summaries are compiled daily from the linked reports with AI assistance.