We have kept our GDP growth forecast for the Czech Republic unchanged at 2.3% in 2025 and 2.7% in 2026. However, we will likely upgrade our outlook, particularly over the medium term, in light of the nascent German fiscal stimulus. This is expected to generate both positive and negative spillovers for the Czech economy, given its strong trade ties with Germany. It will also partially offset the negative impact of U.S. tariffs, which we anticipate will be imposed in Q2.
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