S&P improves the outlook of the Czech Republic's rating

On 25 September 2026, the rating agency S&P Global Ratings improved the outlook of the Czech Republic's long-term rating from stable to positive. At the same time it affirmed the Czech Republic's long-term rating at AA- in foreign currency and AA in domestic currency [1]. According to the economist Lukáš Kovanda, this is the most favourable rating the Czech Republic has had from this agency in its history, and S&P improved the outlook in this way for the first time in more than fifteen years [2].^*

Reasons for the assessment

The agency justified the improved outlook by the resilience of the Czech economy to external shocks, the good state of public finances and the external financial balance, and the effective monetary policy of the Czech National Bank (ČNB) [1]. S&P expects the Czech economy to grow by 2.3 percent a year on average in 2026 to 2029 [1]. In the second quarter of 2026 the Czech economy grew by 1.9 percent year on year, and the agency expects growth of two percent for the whole of 2026 and 2.4 percent in 2027 [1]. According to the agency, consumption should be supported by a strong labour market and wage growth, and exports by a recovery of the German economy [1].

Public finances and the government

According to the economist Lukáš Kovanda, the agency expects the government of Andrej Babiš to loosen fiscal policy and increase social spending and investment, and it takes into account that the budget framework is considerably looser than in the past. At the same time, according to Kovanda, the agency expects economic policy to remain cautious and the Czech economy to keep its traditionally business-oriented character [2]. According to S&P, the public finance deficit will average around three percent of GDP in 2026 to 2029, and net public debt should rise to 38 percent of GDP by 2029 from 31 percent in 2025 [1].

Risks and outlook

The agency stated that if economic growth continues, it could raise the rating within one to two years [1]. As risks, the agency named more expensive energy, developments in the Middle East and a looser fiscal policy of the Czech government [1].

Chronology

September 25, 2026 — The rating agency S&P raised the outlook on Czechia's credit rating from stable to positive. Seznam Zprávy Echo24

Sources

Seznam Zprávy — 25 September 2026
Echo24 — 25 September 2026

* The sources are collected and the preliminary text of this entry is drafted with artificial intelligence, on the instruction of the editorial staff; the entry has not yet been verified by an editor — report a mistake.