PRAGUE, May 30 (Xinhua) -- The Czech economy expanded by 2.2 percent year-on-year in the first quarter (Q1) of this year, marking the strongest gross domestic product (GDP) growth since the second quarter of 2022, according to data released on Friday.
According to a refined estimate from the Czech Statistical Office (CSU), the annual GDP increase was driven by a 2.3 percent rise in final consumption expenditures and higher inventory accumulation. Household final consumption rose by 2.5 percent year-on-year, while government spending increased by 1.9 percent.
On the other hand, foreign trade performance, in particular, weighed negatively on overall economic activity, the CSU said.
Compared to the previous quarter, GDP grew by 0.8 percent. In its preliminary estimate in late April, the CSU had projected Q1 GDP growth at 2 percent year-on-year and 0.5 percent quarter-on-quarter.
In its comment on the Q1 data, the Czech National Bank noted that the economy's performance at the beginning of the year exceeded expectations.
"However, this result was achieved before the blanket U.S. tariffs were announced. It is therefore uncertain whether the Czech economy will be able to maintain this trend," it said, warning that uncertainty stemming from the tariffs could disrupt the recovery, with investment and exports likely to be the first to suffer.
The central bank expects GDP growth to remain close to 2 percent in 2025. Last month, the Czech Ministry of Finance also revised the country's 2025 GDP growth forecast down to 2 percent, from the 2.3 percent forecast in January, due to the potential fallout from new U.S. tariffs on cars, car parts, steel, and aluminum. ■
