In the first 6 months of 2025, the Czech economy recorded many positive signals: GDP in the first quarter increased by 2.2% compared to the same period; inflation decreased to around the target of 2%; unemployment rate remained at a very low level (~2.6%). Exports grew well in the industrial goods group, especially automobiles and electronics, helping the Czech Republic continue to maintain a trade surplus.

The Czech government continued its tight fiscal policy, with increased budget revenue and reduced spending, helping the state budget deficit in the first 4 months of the year decrease to 126 billion CZK - much lower than the same period in 2024. The Czech Central Bank (CNB) began to lower its operating interest rate to 3.5% to support growth in the context of stable inflation.

In terms of development policy, the Government is promoting investment programs in green transformation, digitalization, and future industry. Notable among them are:

• Energy: The Czech Republic launched the Dukovany Nuclear Power Plant expansion project (2 new units in cooperation with Korea), aiming to increase the proportion of nuclear power to nearly 50% by 2040. At the same time, renewable energy - especially solar power - has grown strongly thanks to subsidies and legal reforms. In 2025, the Czech Republic will also stop importing Russian oil for the first time, clearly demonstrating its orientation towards energy self-sufficiency.
• AI and high technology: The Government has implemented the National AI Strategy to 2030, supporting research and application of AI in industry and public services, promoting AI human resource training, and building an ethical legal framework. The Czech Republic is gradually becoming an emerging AI center in Central Europe.
• Semiconductors and new industries: The National Semiconductor Center opens in Brno with the participation of pioneering companies such as Codasip, Onsemi. With a strong chip design platform and leading electron microscope production capacity, the Czech Republic is actively participating in the EU value chain for microchips and semiconductors. In addition, the country is also betting big on the battery and electric vehicle industry, launching a 7.9 billion EUR gigafactory project and exploiting domestic lithium mines.
• Digital transformation and biotechnology: The Czech Republic expands innovation funds, technology incubators, encourages technology startups, FinTech and AI. The biotechnology - pharmaceutical industry has also received strong investment after the pandemic, gradually forming a domestic pharmaceutical research - production chain.

The situation in the first 6 months of 2025 shows that the Czech economy is stable in terms of macro-economy, has reasonable fiscal tightening, and is moving strongly towards strategic industries: clean energy, high technology, semiconductors and artificial intelligence - creating a foundation for long-term growth and enhancing national competitiveness in the European value chain.