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The Economy of Czech Republic

Czech Economy

Czech Republic's map

Economy - overview: The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Maintaining an open investment climate has been a key element of the Czech Republic's transition from a communist, centrally planned economy to a functioning market economy. As a member of the European Union, with an advantageous location in the center of Europe, a relatively low cost structure, and a well-qualified labor force, the Czech Republic is an attractive destination for foreign investment. Prior to its EU accession in 2004, the Czech government harmonized its laws and regulations with those of the European Union. The government plans to meet the criteria for joining the eurozone around 2012. The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and the strong growth continued throughout the first three quarters of 2008. Despite the global financial crisis, the conservative Czech financial system has remained relatively healthy. The rate of Czech economic growth, however, began to fall in the fourth quarter of 2008, mainly due to a significant drop in demand for Czech exports in Western Europe. This trend is expected to continue, with many analysts predicting Czech economy to contract slightly in 2009.

GDP:

GDP - real growth rate: 3.9% (2008 est.) 6% (2007 est.) 6.8% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2.6% industry: 38.7% services: 58.7% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 4.3% highest 10%: 22.4% (1996)

Distribution of family income - Gini index: 26 (2005)

Inflation rate (consumer prices):

Labor force: 5.37 million (2008 est.)

Labor force - by occupation: agriculture: 3.6% industry: 40.2% services: 56.2% (2007)

Unemployment rate: 6% (2008)

Budget: revenues: $94.96 billion expenditures: $99.46 billion (2008 est.)

Industries: motor vehicles, metallurgy, machinery and equipment, glass, armaments

Industrial production growth rate: 7% (2008 est.)

Electricity - production: 82.88 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 61.52 billion kWh (2006 est.)

Electricity - exports: 26.36 billion kWh (2007 est.)

Electricity - imports: 10.2 billion kWh (2007 est.)

Oil - production: 13,530 bbl/day (2007 est.)

Oil - consumption: 207,400 bbl/day (2007 est.)

Oil - exports: 27,360 bbl/day (2005)

Oil - imports: 224,600 bbl/day (2005)

Oil - proved reserves: 15 million bbl (1 January 2008 est.)

Natural gas - production: 172 million cu m (2007 est.)

Natural gas - consumption: 8.622 billion cu m (2007 est.)

Natural gas - exports: 402 million cu m (2007 est.)

Natural gas - imports: 8.628 billion cu m (2007 est.)

Natural gas - proved reserves: 3.964 billion cu m (1 January 2008 est.)

Agriculture - products: wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

Exports: $145.8 billion f.o.b. (2008 est.)

Exports - commodities: machinery and transport equipment 52%, raw materials and fuel 9%, chemicals 5% (2003)

Exports - partners: Germany 30.7%, Slovakia 8.7%, Poland 5.9%, France 5.4%, UK 5.1%, Italy 4.9%, Austria 4.6% (2007)

Imports: $141.4 billion f.o.b. (2008 est.)

Imports - commodities: machinery and transport equipment 46%, raw materials and fuels 15%, chemicals 10% (2003)

Imports - partners: Germany 31.8%, Netherlands 6.7%, Slovakia 6.4%, Poland 6.3%, Austria 5.1%, China 5.1%, Russia 4.5%, Italy 4.4%, France 4.1% (2007)

Debt - external: $88.74 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: koruny (CZK) per US dollar - 17.064 (2008), 20.53 (2007), 22.596 (2006), 23.957 (2005), 25.7 (2004)

Fiscal year: