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 confirmed the Czech 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 assessment of the Czech Republic by this agency in history, and S&P improved the outlook in this way for the first time in more than fifteen years [2].*

Reasons for the assessment

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

Public finances and the government

The agency stated that it expects the government of Andrej Babiš to conduct a looser fiscal policy and to increase social spending and investment, and that it perceives the budget framework to have been noticeably loosened compared with the past. At the same time, however, it expects economic policy to remain prudent and no departure from the traditionally business-oriented setting of the Czech economy [2]. According to S&P, the public finance deficit will average around three per cent of GDP in 2026 to 2029, and net public debt should rise to 38 per cent of GDP by 2029 from 31 per cent 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]. At the same time it pointed to risks linked to higher energy prices, developments in the Middle East and the looser fiscal policy of the Czech government [1].

Chronology

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

Sources

  1. Seznam Zprávy — 25 September 2026
  2. Echo24 — 25 September 2026