In 2024, the value of public procurement in the Czech Republic reached CZK 993 billion. This is an increase of CZK 68 billion compared to the previous year. Growth was mainly driven by investments in transport infrastructure and defence acquisitions.
The share of procurement in GDP rose to 12.4%, up by 0.3 percentage points. This level is slightly above the average of the last decade and higher than the EU average, which ranges between 11% and 12% of GDP (Ceske noviny).
Defence: contracts for national firms or foreign partners?
A significant share of defence contracts goes to foreign suppliers, such as the United States and Germany. These multi-billion deals strengthen NATO cooperation, but also channel large sums of money abroad.
At the same time, the domestic defence industry, including companies like Česká zbrojovka and Excalibur Army, benefits from subcontracts and maintenance deals. This helps create local value and jobs.
The key issue is whether rising public spending will boost the national economy or mainly sustain foreign suppliers.
Transparency under scrutiny
Alongside growing investments, another trend has emerged. The share of contracts recorded in the ISVZ system dropped from 83% to 68%.
This decline shows that a larger portion of spending is not immediately visible or easy to monitor. In a context where billions flow into strategic sectors, even small changes in transparency can affect public perception and trust in institutions.
A race that reshapes the balance
The increase in defence spending places the Czech Republic among the most active European countries in strengthening security. It reinforces the nation’s position within NATO and its international profile.
Yet this momentum brings less linear dynamics. Part of the capital flows to foreign suppliers, while domestic returns remain harder to measure. Transparency levels also show signs of decline.
The strengthening of national defence thus goes hand in hand with new economic and institutional challenges, calling for careful long-term attention.
