Czech GDP growth was 2.9 percent last year, which means that Czechia is the 13th fastest growing economy in the European Union. In this regard, the Czech economy surpasses the original EU Member States, including Germany, and the EU average as a whole.
The Irish, Maltese, and Polish economies grew the fastest last year, while the economies of Italy, Denmark, Great Britain, and Germany slowed down. Surprisingly, the Czech economy grew even though it is strongly linked to the underperforming countries. "New member countries are growing faster, except for Ireland and Malta. Old member states have been weaker," said Marek Rojíček, head of the Czech Statistical Office.
However, the growth of the Czech economy slowed down in 2018 compared to 2017, from 4.5 percent to 2.9 percent of GDP. Consumption and investment activity were the main drivers of the economy last year. On the other side, it was weakened by the decline in foreign demand and also by the labor shortage.
Based on the development of economic growth, the Czech economy is probably already behind its peak, according to Rojíček. From an economic point of view, the Czech Republic reached 89 percent of the EU level in 2017, so the EU average of 90 percent is possible for Czechia. Right now, the Czech Republic economy level is comparable to Spain, for example.