Czech Republic faces high capital outflows and trade deficit

The Czech economy is experiencing a significant outflow of capital to foreign owners. According to Czech National Bank data, dividends paid to foreign entities reached approximately 335 billion CZK in 2025, averaging nearly one billion CZK per day. This trend reflects a shift in the ratio of reinvested profits to dividends, which has moved from a 50:50 split to roughly 30:70.

Concurrently, recent economic indicators show mixed results for the Czech Republic. Industrial production grew by 2.6% year-on-year in August, a slowdown from the 3.1% growth seen in July. Construction production declined by 1.4%. The foreign trade balance remained in a deficit of 5.3 billion CZK, representing a year-on-year worsening of 5.6 billion CZK.

In the foreign exchange market, the Czech koruna has shown slight fluctuations, weakening marginally against the euro while remaining relatively stable or strengthening against the US dollar.