Czech economy: external debt increased by $20 billion in a year

In 2024, the Czech Republic's external debt increased by 460.4 billion crowns, equivalent to $20 billion, and reached a total of 5.2 trillion crowns (about $230.1 billion), accounting for 65.8% of the country's GDP. This was reported by the press service of the Czech National Bank (CNB). In the last quarter of the year, debt growth amounted to 92.9 billion crowns, which corresponds to about $4.1 billion.

The main reason for this growth, as explained by Peter Dufek, Chief economist at Creditas Bank, was the active borrowing by companies and banks. The high level of domestic interest rates has led national enterprises to prefer to borrow funds abroad. The banking sector, in turn, attracted foreign investors and depositors, encouraging them to place deposits in kroner within the Czech Republic.

Despite the significant increase in external debt, Dufek stressed that the current level remains safe. According to him, the amount of debt is reliably offset by the foreign exchange reserves of the National Security Council, which minimizes possible risks to the country's economy.