Czech gross domestic product (GDP) grew by 1.8% year-on-year (y/y) and by 0.3% quarter-on-quarter (q/q) in the second quarter of this year, according to the refined estimate released by the Czech Statistical Office (CZSO) on September 30.

This is slightly down on the refined estimate CZSO released at the end of August, and down on the first estimate of 2% released at the end of July, signalling the widely anticipated slowing down of the country’s economy.

“The reason is not just a weaker demand, but strengthening competition on international markets and sharply increasing energy costs, which are going to burden the domestic companies as well as household even more in the coming month,” Petr Dufek, head economist of Banka Creditas, commented for Czech Press Agency on the reasons of the slowdown.

Dufek added that “we are most likely to see a lower pace of growth in the second half of the year as well” and projected the Czech economy to grow by 1.7% overall this year.

CZSO also reported on the households’ performance in the economy. “In the Q2 2026, the real income of households increased by 3.1%, y/y, and household consumption per capita by 2.5%,“ Vladimír Kermiet of CZSO commented.

The total of monetary and non-monetary income of households increased in real terms by 0.7% q/q, while the real consumption per capita increased by 0.6% q/q and the savings rate by 0.4 percentage point.

Earlier in September, the European Bank for Reconstruction and Development (EBRD) lowered its projection of the Czech GDP growth to 2.4% next year and maintained its expectation of 2.2% growth this year.