In 2025, the Czech Republic confirms its position as one of the world’s strongest economies.
According to a new analysis by The Economist, the country ranks 6th worldwide among 36 advanced economies, a remarkable rise from 18th place in 2024.
This result represents one of the best economic performances of the last decade for the Czech Republic and further strengthens its role as a strategic hub in Central Europe.
Key Indicators Behind the Ranking
The Economist ranking is based on four core indicators:
- GDP growth
- Inflation
- Employment
- Stock market performance
Across all these metrics, the Czech Republic outperforms the European average, creating a favorable environment for business development, foreign investment, and entrepreneurial initiatives.
Solid Economic Growth and Controlled Inflation
One of the main strengths of the Czech economy in 2025 is robust GDP growth.
The economy is expanding at an annual rate of 2.8%, defined by The Economist as “decent” despite a still-fragile global context.
This growth is supported by a stable labor market and high employment levels, making the Czech Republic particularly attractive for company formation and international expansion.
Inflation trends are also encouraging.
Core inflation remains only 1.4 percentage points above the target set by the Czech National Bank (CNB), highlighting effective monetary control—especially compared to other advanced economies still facing inflationary pressure.
Prague Stock Exchange: Strong Growth and Investor Confidence
A key driver of this success is the Prague Stock Exchange (PSE).
According to The Economist, Czech stock prices rose 46% year-on-year, ranking as the third-best performance globally.
The main PX index increased by 41.6% between January and November, reflecting strong investor confidence and reinforcing the Czech Republic’s reputation as a stable and attractive investment destination.
Structural Challenges to Address
Despite excellent results, some structural challenges remain:
- High energy costs
- Slow public and private investment
- Shortage of skilled labor
- Declining housing affordability
Addressing these factors will be essential to sustain long-term growth.
Economic Dependence on Germany
Another critical point is the Czech Republic’s strong dependence on Germany, particularly in sectors such as automotive manufacturing.
Economic slowdowns in Germany could directly affect Czech growth, making diversification and value-added production a strategic priority.
Why the Czech Republic Is a Strategic Choice in 2025
Within Europe, the Czech Republic stands out as one of the most resilient, competitive, and business-friendly economies.
Prague continues to attract companies, entrepreneurs, and international investors thanks to its combination of growth, stability, and dynamic financial markets.
These conditions strongly support:
- New company formation
- International expansion
- Structured business development
Partnering with a consulting firm in the Czech Republic allows businesses and investors to fully leverage these opportunities in 2025 and beyond.
