The CIA World Factbook Every edition, 1993 to 2025 Europe
Economic overview Czechia, in 33 editions.
The entry for Czechia published Economic overview in 33 editions of 33, from 1993 to 2025. The text changed in 28 editions. Each is shown as published. Economic overview in every entry.
- editions changed the text
- 28
- the first edition with it
- 1993
- the latest edition with it
- 2025
Published as “Overview” (1993 to 1995), “Economic overview” (1996 to 2025), “Economy - overview” (1997 to 2019), “Economy-overview” (1998) and “Economy--overview” (1999).
field in that editiontext changed from the edition beforenot in that editionthe edition shownChoose an edition on the strip beside the text, or step through them with the arrows. Mark changes compares it with the edition before: the marks are ours, words added and words removed.
2025 edition
Changed since 2024Entry published as “Czech Republic”.
Published as “Overview”
The dissolution of Czechoslovakia into two independent nation states - the Czech Republic and Slovakia - on 1 January 1993 has complicated the task of moving toward a more open and decentralized economy. The old Czechoslovakia, even though highly industrialized by East European standards, suffered from an aging capital plant, lagging technology, and a deficiency in energy and many raw materials. In January 1991, approximately one year after the end of communist control of Eastern Europe, theCzech and Slovak Federal Republic launched a sweeping program to convert its almost entirely state-owned and controlled economy to a market system.
In 1991-92 these measures resulted in privatization of some medium- and small-scale economic activity and the setting of more than 90% of prices by the market - but at a cost in inflation, unemployment, and lower output. For Czechoslovakia as a whole inflation in 1991 was roughly 50% and output fell 15%. In 1992, in the Czech lands, inflation dropped to an estimated 12.5% and GDP was down a more moderate 5%. For 1993 the government of the Czech Republic anticipates inflation of 15-20% and a rise in unemployment to perhaps 12% as some large-scale enterprises go into bankruptcy; GDP may drop as much as 3%, mainly because of the disruption of trade links with Slovakia.
Although the governments of the Czech Republic and Slovakia had envisaged retaining the koruna as a common currency, at least in the short term, the two countries ended the currency union in February 1993.
The dissolution of Czechoslovakia into two independent nation states - the
Czech Republic and Slovakia - on 1 January 1993 has complicated the task of
moving toward a more open and decentralized economy. The old Czechoslovakia,
even though highly industrialized by East European standards, suffered from
an aging capital plant, lagging technology, and a deficiency in energy and
many raw materials. In January 1991, approximately one year after the end of
communist control of Eastern Europe, theCzech and Slovak Federal Republic
launched a sweeping program to convert its almost entirely state-owned and
controlled economy to a market system. In 1991-92 these measures resulted in
privatization of some medium- and small-scale economic activity and the
setting of more than 90% of prices by the market - but at a cost in
inflation, unemployment, and lower output. For Czechoslovakia as a whole
inflation in 1991 was roughly 50% and output fell 15%. In 1992, in the Czech
lands, inflation dropped to an estimated 12.5% and GDP was down a more
moderate 5%. For 1993 the government of the Czech Republic anticipates
inflation of 15-20% and a rise in unemployment to perhaps 12% as some
large-scale enterprises go into bankruptcy; GDP may drop as much as 3%,
mainly because of the disruption of trade links with Slovakia. Although the
governments of the Czech Republic and Slovakia had envisaged retaining the
koruna as a common currency, at least in the short term, the two countries
ended the currency union in February 1993.
Entry published as “Czech Republic”.
Published as “Overview”
The dissolution of Czechoslovakia into two independent nation states - the Czech Republic and Slovakia - on 1 January 1993 has complicated the task of moving toward a more open and decentralized economy. The old Czechoslovakia, even though highly industrialized by East European standards, suffered from an aging capital plant, lagging technology, and a deficiency in energy and many raw materials. In January 1991, approximately one year after the end of communist control of Eastern Europe, the Czech and Slovak Federal Republic launched a sweeping program to convert its almost entirely state-owned and controlled economy to a market system.
In 1991-92 these measures resulted in privatization of some medium- and small-scale economic activity and the setting of more than 90% of prices by the market - but at a cost in inflation, unemployment, and lower output. For Czechoslovakia as a whole inflation in 1991 was roughly 50% and output fell 15%. In 1992, in the Czech lands, inflation dropped to an estimated 12.5% and GDP was down a more moderate 5%. In 1993, Czech aggregate output remained unchanged, prices rose about 19%, and unemployment hovered above 3%; exports to Slovakia fell roughly 30%. An estimated 40% of the economy was privately owned.
In 1994, Prague expects 2% to 3% growth in GDP, roughly 9% inflation, and 5% unemployment. Economic growth in 1994 is less important than continued economic restructuring; a mere 1% growth would be noteworthy if restructuring is accompanied by rising unemployment and enterprise bankruptcies.
The dissolution of Czechoslovakia into two independent nation states - the
the Czech Republic and Slovakia - on 1 January 1993 has complicated
the task of
old Czechoslovakia,
standards, suffered from
and a deficiency in energy and
approximately one year after the end of
Europe, theCzech the Czech and Slovak Federal Republic
program to convert its almost entirely state-owned and
economy to a market system. In 1991-92 these measures resulted in
privatization of some medium- and small-scale economic activity and the
the setting of more than 90% of prices by the market - but at a cost in
in inflation, unemployment, and lower output. For Czechoslovakia as a whole
whole inflation in 1991 was roughly 50% and output fell 15%. In 1992,
in the Czech
was down a moreFor 1993 the government of the In 1993, Czech Republic anticipates aggregate output remainedinflation of 15-20% unchanged, prices rose about 19%, and a rise in unemployment to perhaps 12% as some hovered above 3%;
large-scale enterprises go into bankruptcy; GDP may drop as much as 3%,mainly because of the disruption exports to Slovakia fell roughly 30%. An estimated 40% of trade links with Slovakia. Although the economygovernments of the Czech Republic was privately owned. In 1994, Prague expects 2% to 3% growth in GDP,
roughly 9% inflation, and Slovakia had envisaged retaining the 5% unemployment. Economic growth in 1994 iskoruna as less important than continued economic restructuring; a common currency, at least in the short term, the two countries mere 1% growthended the currency union in February 1993. would be noteworthy if restructuring is accompanied by rising
unemployment and enterprise bankruptcies.
Entry published as “Czech Republic”.
Published as “Overview”
The government of the Czech Republic, using successful stabilization policies to bolster its claims to full membership in the western economic community, has reduced inflation to 10%, kept unemployment at 3%, balanced the budget, run trade surpluses, and reoriented exports to the EU since the breakup of the Czechoslovak federation on 1 January 1993. GDP grew 2% in 1994 after stagnating in 1993 and contracting nearly 20% since 1990.
Prague's mass privatization program, including its innovative distribution of ownership shares to Czech citizens via 'coupon vouchers,' has made the most rapid progress in Eastern Europe. When coupon shares are distributed in early 1995, 75%-80% of the economy will be in private hands or partially privatized, according to the Czech government. Privatized companies still face major problems in restructuring; the number of annual bankruptcies quadrupled in 1994.
In September 1994, Prague repaid $471 million in IMF loans five years ahead of schedule, making the Czech Republic the first East European country to pay off all IMF debts. Despite these outlays, hard-currency reserves in the banking system totaled more than $8.5 billion in October. Standard & Poor's boosted the Republic's credit rating to BBB+ in mid-1994 - up from a BBB rating that was already two steps higher than Hungary's and one step above Greece's rating.
Prague forecasts a balanced budget, at least 3% GDP growth, 5% unemployment, and single-digit inflation for 1995. Inflationary pressures - primarily as a result of foreign bank lending to Czech enterprises but perhaps also due to eased currency convertibility controls - are likely to be the most troublesome issues in 1995. Continuing economic recovery in Western Europe should boost Czech exports and production but a substantial increase in prices could erode the Republic's comparative advantage in low wages and exchange rates.
Prague already took steps in 1994 to increase control over banking policies to neutralize the impact of foreign inflows on the money supply. Although Czech unemployment is currently the lowest in Central Europe, it will probably increase 1-2 percentage points in 1995 as large state firms go bankrupt or are restructured and service sector growth slows.
Rewritten: too little of the 1994 text remains to mark the changes.
The government of the Czech Republic, using successful
stabilization policies to bolster its claims to full membership in the
western economic community, has reduced inflation to 10%, kept
unemployment at 3%, balanced the budget, run trade surpluses, and
reoriented exports to the EU since the breakup of the Czechoslovak
federation on 1 January 1993. GDP grew 2% in 1994 after stagnating in
1993 and contracting nearly 20% since 1990. Prague's mass
privatization program, including its innovative distribution of
ownership shares to Czech citizens via 'coupon vouchers,' has made the
most rapid progress in Eastern Europe. When coupon shares are
distributed in early 1995, 75%-80% of the economy will be in private
hands or partially privatized, according to the Czech government.
Privatized companies still face major problems in restructuring; the
number of annual bankruptcies quadrupled in 1994. In September 1994,
Prague repaid $471 million in IMF loans five years ahead of schedule,
making the Czech Republic the first East European country to pay off
all IMF debts. Despite these outlays, hard-currency reserves in the
banking system totaled more than $8.5 billion in October. Standard &
Poor's boosted the Republic's credit rating to BBB+ in mid-1994 - up
from a BBB rating that was already two steps higher than Hungary's and
one step above Greece's rating. Prague forecasts a balanced budget, at
least 3% GDP growth, 5% unemployment, and single-digit inflation for
1995. Inflationary pressures - primarily as a result of foreign bank
lending to Czech enterprises but perhaps also due to eased currency
convertibility controls - are likely to be the most troublesome issues
in 1995. Continuing economic recovery in Western Europe should boost
Czech exports and production but a substantial increase in prices
could erode the Republic's comparative advantage in low wages and
exchange rates. Prague already took steps in 1994 to increase control
over banking policies to neutralize the impact of foreign inflows on
the money supply. Although Czech unemployment is currently the lowest
in Central Europe, it will probably increase 1-2 percentage points in
1995 as large state firms go bankrupt or are restructured and service
sector growth slows.
Entry published as “Czech Republic”.
The Czech Republic, which separated from Slovakia on 1 January 1993, emerged from recession with 2.6% growth in 1994 and 5% growth in 1995. Inflation in 1994-95 was cut in half; unemployment was kept at about 3%; the budget was balanced; and exports were reoriented to the EU. Prague's mass privatization program, including its innovative distribution of ownership shares to Czech citizens via "coupon vouchers," has made the most rapid progress in Eastern Europe.
About 80% of the economy is wholly or partially in private hands. Because of its progress on reform, the Czech Republic in 1995 became the first post-Communist member of the OECD. Its solid economic performance also led Standard and Poor's to upgrade the country's sovereign credit rating to "A" and attracted nearly $5.3 billion in direct foreign investment to Czech industry between 1990 and September 1995. The Czech crown became convertible for current account transactions in October 1995.
Czech companies increasingly are using the international capital market to fund capital investment, and foreign currency reserves totaled $13.9 billion at the end of 1995. Prague's biggest macroeconomic concern now is limiting the inflationary effect of these large capital inflows. The Czech economy also still faces microeconomic problems. Prague has promised to strengthen its bankruptcy law and improve the transparency of stock market operations in 1996, but some changes probably will not take effect until some time after the parliamentary elections of mid-1996 and will depend largely on voluntary compliance. Prague forecasts a balanced budget, 5.5% GDP growth, 2.8% unemployment, and 8.1% inflation for 1996.
Rewritten: too little of the 1995 text remains to mark the changes.
The Czech Republic, which separated from
Slovakia on 1 January 1993, emerged from recession with 2.6% growth
in 1994 and 5% growth in 1995. Inflation in 1994-95 was cut in half;
unemployment was kept at about 3%; the budget was balanced; and
exports were reoriented to the EU. Prague's mass privatization
program, including its innovative distribution of ownership shares
to Czech citizens via "coupon vouchers," has made the most rapid
progress in Eastern Europe. About 80% of the economy is wholly or
partially in private hands. Because of its progress on reform, the
Czech Republic in 1995 became the first post-Communist member of the
OECD. Its solid economic performance also led Standard and Poor's to
upgrade the country's sovereign credit rating to "A" and attracted
nearly $5.3 billion in direct foreign investment to Czech industry
between 1990 and September 1995. The Czech crown became convertible
for current account transactions in October 1995. Czech companies
increasingly are using the international capital market to fund
capital investment, and foreign currency reserves totaled $13.9
billion at the end of 1995. Prague's biggest macroeconomic concern
now is limiting the inflationary effect of these large capital
inflows. The Czech economy also still faces microeconomic problems.
Prague has promised to strengthen its bankruptcy law and improve the
transparency of stock market operations in 1996, but some changes
probably will not take effect until some time after the
parliamentary elections of mid-1996 and will depend largely on
voluntary compliance. Prague forecasts a balanced budget, 5.5% GDP
growth, 2.8% unemployment, and 8.1% inflation for 1996.
Entry published as “Czech Republic”.
Published as “Economy - overview”
Western observers view the Czech Republic as one of the most politically and economically stable post-Communist states. Its key macroeconomic indicators are, in the aggregate, the best in the region, and public opinion polls show strong support for reform. The country emerged from recession in 1994 with 2.6% growth and reached about 5% growth in both 1995 and 1996 while keeping a balanced budget and reorienting exports to the EU. Inflation and unemployment of 8.7% and 3.3% respectively in 1996 are among the lowest in the region.
Prague's mass privatization program, including its innovative distribution of ownership shares to Czech citizens via "coupon vouchers," has made the most rapid progress in Eastern Europe. About 80% of the economy is in private hands or is partially privatized. The Czech Republic appears to be the East European frontrunner in economic integration with the West; for example, in 1996 it began to strengthen its bankruptcy law and to improve the transparency of stock market operations.
It was the first post-Communist member of the OECD and is expected to be in the next group of new EU members. Its solid economic performance has led Standard and Poor's to upgrade the country's sovereign credit rating to "A" and has attracted over $6.7 billion in direct foreign investment to Czech industry between 1990 and September 1996 - one quarter from the US. Prague's biggest macroeconomic concerns now are mounting trade and current account deficits.
In addition, the Czech economy still faces transition problems. The government continues to exert too much direct and indirect influence on the privatized economy, and the management of privatized firms sometimes is ineffective. Insufficient regulation and lack of public information in the capital markets and the banking system, combined with a shortage of experienced financial analysts, limit the ability to distribute new credit efficiently.
The judicial system also has trouble speedily processing bankruptcy cases. Prague has promised to overhaul its bankruptcy law and improve stock market and bank operations, but it will take years to ensure compliance. Prague forecasts a balanced budget, 4.5% GDP growth, 3.3% unemployment and 7.5% to 8% inflation for 1997.
The Western observers view the Czech Republic, which separated from Republic as oneSlovakia on 1 January 1993, of the most politically and economically stable post-Communist states.
Its key macroeconomic indicators are, in the aggregate, the best in
the region, and public opinion polls show strong support for reform.
The country emerged from recession in 1994 with 2.6% growth
in 1994
reached about 5% growth in 1995. Inflation in 1994-95 was cut in half; both 1995 and 1996 while keeping a balancedunemployment was kept at about 3%; the budget was balanced; andwere reoriented to the EU. Inflation and unemployment
of 8.7% and 3.3% respectively in 1996 are among the lowest in the
region. Prague's mass privatization
distribution of ownership shares
vouchers," has made the most rapid
80% of the economy is wholly or in private
partiallyhands. Because of its progress on reform, the hands or is partially privatized. The
Czech Republic appears to be the East European frontrunner in 1995 became economic
integration with the West; for example, in 1996 it began to strengthen
its bankruptcy law and to improve the transparency of stock market
operations. It was the first post-Communist member of the OECD and isOECD. expected to be in the next group of new EU members. Its solid economic
performance also has led Standard and Poor's to
sovereign credit rating to "A" and has attracted
nearly $5.3
direct foreign investment to Czech industry1995. The Czech crown became convertiblefor 1996 - one quarter from the US. Prague's biggest macroeconomic
concerns now are mounting trade and current account transactions in October 1995. Czech companies deficits. Inincreasingly are using addition, the international capital market to fund Czech economy still faces transition problems. Thecapital investment, government continues to exert too much direct and foreign currency reserves totaled $13.9 indirect influencebillion at on the end privatized economy, and the management of 1995. Prague's biggest macroeconomic concern privatized firmsnow sometimes is limiting the inflationary effect ineffective. Insufficient regulation and lack of these large public
information in the capital markets and the banking system, combinedinflows. with a shortage of experienced financial analysts, limit the ability
to distribute new credit efficiently. The Czech economy judicial system also still faces microeconomic problems. has
trouble speedily processing bankruptcy cases. Prague has promised to strengthen
overhaul its bankruptcy law and improve the stock market
transparency ofoperations in 1996, but some changes and bankprobably operations, but it will not take effect until some time after the years to ensure compliance. Prague
parliamentary elections of mid-1996 and will depend largely on
voluntary
forecasts a balanced budget, 5.5% 4.5% GDP2.8% unemployment, 3.3% unemployment and 8.1%
7.5% to 8% inflation for 1996. 1997.
Entry published as “Czech Republic”.
Published as “Economy-overview”
Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles, which culminated in a currency crisis in May. The currency was forced out of its fluctuation band as investors worried that the current account deficit, which reached about 8% of GDP in 1996, would become unsustainable.
After expending $3 billion in vain to support the currency, the central bank let it float. The growing current account imbalance reflected a surge in domestic demand and poor export performance, as wage increases outpaced productivity. The government was forced to introduce two austerity packages later in the spring which cut government spending by 2.5% of GDP. A tough 1998 budget continues the painful medicine. These problems were compounded in the summer of 1997 by unprecedented flooding which inundated much of the eastern part of the country.
Czech difficulties in 1997 contrast with earlier achievements of strong GDP growth, a balanced budget, and inflation and unemployment that were among the lowest in the region. The Czech economy's transition problems continue to be too much direct and indirect government influence on the privatized economy, the sometimes ineffective management of privatized firms, and a shortage of experienced financial analysts for the banking system. Prague forecasts a balanced budget, 2.2% GDP growth, 5.2% unemployment, and 10% inflation for 1998.
Rewritten: too little of the 1997 text remains to mark the changes.
Political and financial crises in 1997 shattered the
Czech Republic's image as one of the most stable and prosperous of
post-Communist states. Delays in enterprise restructuring and failure
to develop a well-functioning capital market played major roles in
Czech economic troubles, which culminated in a currency crisis in May.
The currency was forced out of its fluctuation band as investors
worried that the current account deficit, which reached about 8% of
GDP in 1996, would become unsustainable. After expending $3 billion in
vain to support the currency, the central bank let it float. The
growing current account imbalance reflected a surge in domestic demand
and poor export performance, as wage increases outpaced productivity.
The government was forced to introduce two austerity packages later in
the spring which cut government spending by 2.5% of GDP. A tough 1998
budget continues the painful medicine. These problems were compounded
in the summer of 1997 by unprecedented flooding which inundated much
of the eastern part of the country. Czech difficulties in 1997
contrast with earlier achievements of strong GDP growth, a balanced
budget, and inflation and unemployment that were among the lowest in
the region. The Czech economy's transition problems continue to be too
much direct and indirect government influence on the privatized
economy, the sometimes ineffective management of privatized firms, and
a shortage of experienced financial analysts for the banking system.
Prague forecasts a balanced budget, 2.2% GDP growth, 5.2%
unemployment, and 10% inflation for 1998.
Entry published as “Czech Republic”.
Published as “Economy--overview”
Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles, which culminated in a currency crisis in May. The currency was forced out of its fluctuation band as investors worried that the current account deficit, which reached nearly 8% of GDP in 1996, would become unsustainable.
After expending $3 billion in vain to support the currency, the central bank let it float. The growing current account imbalance reflected a surge in domestic demand and poor export performance, as wage increases outpaced productivity. The government was forced to introduce two austerity packages later in the spring which cut government spending by 2.5% of GDP. A tough 1998 budget continued the painful medicine. These problems were compounded in the summer of 1997 by unprecedented flooding which inundated much of the eastern part of the country.
Czech difficulties contrast with earlier achievements of strong GDP growth, a balanced budget, and inflation and unemployment that were among the lowest in the region. The Czech economy's transition problems continue to be too much direct and indirect government influence on the privatized economy, the sometimes ineffective management of privatized firms, and a shortage of experienced financial analysts for the banking system. The country slipped into a mild recession in 1998, but hopes to rebound with 1% growth in 1999.
Political and financial crises in 1997
shattered the
prosperous of
restructuring and failure
market played major roles in
culminated in a currency crisis in May.
of its fluctuation band as investors
account deficit, which reached about nearly 8% of
become unsustainable. After expending $3 billion in
the currency, the central bank let it float. The
account imbalance reflected a surge in domestic demand
export performance, as wage increases outpaced productivity.
government was forced to introduce two austerity packages later in
the spring which cut government spending by 2.5% of GDP. A tough 1998
1998 budget continues continued the painful medicine. These problems were compounded
compounded in the summer of 1997 by unprecedented flooding which
inundated muchdifficulties in 1997
difficulties contrast with earlier achievements of strong GDP
growth, a balanced
among the lowest in
problems continue to be too
influence on the privatized
management of privatized firms, and
financial analysts for the banking system. The country slipped intoPrague forecasts a balanced budget, 2.2% GDP growth, 5.2% mild recession in 1998, but hopes to rebound with 1% growth inunemployment, and 10% inflation for 1998. 1999.
Entry published as “Czech Republic”.
Published as “Economy - overview”
Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles, which culminated in a currency crisis in May. The currency was forced out of its fluctuation band as investors worried that the current account deficit, which reached nearly 8% of GDP in 1996, would become unsustainable.
After expending $3 billion in vain to support the currency, the central bank let it float. The growing current account imbalance reflected a surge in domestic demand and poor export performance, as wage increases outpaced productivity. The government was forced to introduce two austerity packages later in the spring which cut government spending by 2.5% of GDP. Growth dropped to 0.3% in 1997, -2.3% in 1998, and -0.5% in 1999.
The basic transition problem continues to be too much direct and indirect government influence on the privatized economy. The government established a restructuring agency in 1999 and launched a revitalization program - to spur the sale of firms to foreign companies. Key priorities include accelerating legislative convergence with EU norms, restructuring enterprises, and privatizing banks and utilities. The economy, fueled by increased export growth and investment, is expected to recover in 2000.
Political and financial crises in 1997A tough Growth dropped to 0.3% in
1998 budget continued the painful medicine. These problems were
compoundedthe summer of 1997 by unprecedented flooding which 1997, -2.3% in 1998, and
inundated much of the eastern part of the country. Czech
difficulties contrast with earlier achievements of strong GDP
growth, a balanced budget, and inflationunemployment that were -0.5% in
among the lowestthe region. 1999. The Czech economy's basic transition
problems continueeconomy, the sometimes ineffective economy. The
management of privatized firms, and a shortage of experienced
financial analysts for the banking system.country slipped intogovernment established a mild recession restructuring agency in 1998, but hopes 1999 and launched a revitalization program - to rebound spur the sale of firms to foreign companies. Key priorities include accelerating legislative convergence with 1% EU norms, restructuring enterprises, and privatizing banks and utilities. The economy, fueled by increased export growth and investment, is expected to recover in
1999.
Entry published as “Czech Republic”.
Published as “Economy - overview”
Basically one of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. The economy grew about 2.5% in 2000 and should achieve somewhat higher growth in 2001. Growth is led by exports to the EU, especially Germany, and foreign investment, while domestic demand is reviving. Uncomfortably high fiscal and current account deficits could be future problems.
Unemployment is down to 8.7% as job creation continues in the rebounding economy; inflation is up to 3.8% but still moderate. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications and energy privatization will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
Rewritten: too little of the 2000 text remains to mark the changes.
Basically one of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. The economy grew about 2.5% in 2000 and should achieve somewhat higher growth in 2001. Growth is led by exports to the EU, especially Germany, and foreign investment, while domestic demand is reviving. Uncomfortably high fiscal and current account deficits could be future problems. Unemployment is down to 8.7% as job creation continues in the rebounding economy; inflation is up to 3.8% but still moderate. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications and energy privatization will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
Basically one of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-02 was led by exports to the EU, especially Germany, and foreign investment, while domestic demand is reviving. Uncomfortably high fiscal and current account deficits could be future problems. Unemployment is gradually declining as job creation continues in the rebounding economy.
Inflation is moderate. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications, and energy privatization will encourage additional foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
Basically one of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. The economy grew about 2.5% in 2000 and should achieve somewhat higher growth in 2001. Growth is in 2000-02 was led by exports to the EU, especially Germany, and foreign investment, while domestic demand is reviving. Uncomfortably high fiscal and current account deficits could be future problems. Unemployment is down to 8.7% gradually declining as job creation continues in the rebounding economy; inflation economy. Inflation is up to 3.8% but still moderate. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications telecommunications, and energy privatization will add to encourage additional foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-03 was supported by exports to the EU, primarily to Germany, and a near doubling of foreign direct investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases.
High current account deficits - averaging around 5% of GDP in the last several years - could be a persistent problem. Inflation is under control. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications, and energy privatization will encourage additional foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth. But revival in the European economies remains essential to stepped-up growth.
Basically one One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-02 2000-03 was led supported by exports to the EU, especially primarily to Germany, and a near doubling of foreign investment, while domestic direct investment. Domestic demand is reviving. Uncomfortably high fiscal playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. High current account deficits could be future problems. Unemployment is gradually declining as job creation continues - averaging around 5% of GDP in the rebounding economy. last several years - could be a persistent problem. Inflation is moderate. under control. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications, and energy privatization will encourage additional foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth. But revival in the European economies remains essential to stepped-up growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-03 was supported by exports to the EU, primarily to Germany, and a near doubling of foreign direct investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases.
High current account deficits - averaging around 5% of GDP in the last several years - could be a persistent problem. Inflation is under control. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications, and energy privatization will encourage additional foreign investment, while intensified restructuring among large enterprises and banks, and improvements in the financial sector, should strengthen output growth. Nonetheless, revival in the European economies remains essential to stepped-up growth.
One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-03 was supported by exports to the EU, primarily to Germany, and a near doubling of foreign direct investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. High current account deficits - averaging around 5% of GDP in the last several years - could be a persistent problem. Inflation is under control. The EU put the Czech Republic just behind Poland and Hungary in preparations for accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications, and energy privatization will encourage additional foreign investment, while intensified restructuring among large enterprises and banks banks, and improvements in the financial sector sector, should strengthen output growth. But Nonetheless, revival in the European economies remains essential to stepped-up growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-04 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 5% of GDP are beginning to decline as demand for Czech products in the European Union increases.
Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom is scheduled to take place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
One The Czech Republic is one of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. states of Central and Eastern Europe. Growth in 2000-03 2000-04 was supported by exports to the EU, primarily to Germany, and a near doubling strong recovery of foreign direct and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. High current Current account deficits - averaging of around 5% of GDP are beginning to decline as demand for Czech products in the last several years - could be a persistent problem. European Union increases. Inflation is under control. The EU put Recent accession to the Czech Republic just behind Poland and Hungary in preparations for accession, which will give EU gives further impetus and direction to structural reform. Moves In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to complete banking, telecommunications, bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and energy privatization healthcare reforms will encourage additional foreign investment, while intensified have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom is scheduled to take place in 2005. Intensified restructuring among large enterprises and banks, and enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth. Nonetheless, revival in the European economies remains essential to stepped-up growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-05 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. The current account deficit has declined to around 3% of GDP as demand for Czech products in the European Union has increased.
Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-04 2000-05 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current The current account deficits of deficit has declined to around 5% 3% of GDP are beginning to decline as demand for Czech products in the European Union increases. has increased. Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom is scheduled to take took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-05 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. The current account deficit has declined to around 3% of GDP as demand for Czech products in the European Union has increased.
Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004, the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006. However, due to significant increases in social spending in the run-up to June 2006 elections, the government is not likely to meet this goal.
Negotiations on pension and healthcare reforms are continuing without clear prospects for agreement and implementation. Privatization of the state-owned telecommunications firm Cesky Telecom took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-05 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. The current account deficit has declined to around 3% of GDP as demand for Czech products in the European Union has increased. Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 2004, the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult 2006. However, due to significant increases in social spending in the run-up to June 2006 elections, the government is not likely to meet this goal. Negotiations on pension and healthcare reforms will have to wait until after the next elections. are continuing without clear prospects for agreement and implementation. Privatization of the state-owned telecommunications firm Cesky Telecom took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-07 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as the availability of credit cards and mortgages increases. The current account deficit has declined to around 3.3% of GDP as demand for automotive and other products from the Czech Republic remains strong in the European Union.
Rising inflation from higher food and energy prices are a risk to balanced economic growth. Significant increases in social spending in the run-up to June 2006 elections prevented, the government from meeting its goal of reducing its budget deficit to 3% of GDP in 2007. Negotiations on pension and additional healthcare reforms are continuing without clear prospects for agreement and implementation. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
The pro-business Civic Democratic Party-led government approved reforms in 2007 designed to cut spending on some social welfare benefits and reform the tax system with the aim of eventually reducing the budget deficit to 2.3% of GDP by 2010. Parliamentary approval for any additional reforms could prove difficult, however, because of the parliament's even split. The government withdrew a 2010 target date for euro adoption and instead aims to meet the eurozone criteria around 2012.
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-05 2000-07 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. The current account deficit has declined to around 3% 3.3% of GDP as demand for Czech products in the European Union has increased. Inflation is under control. Recent accession to the EU gives further impetus automotive and direction to structural reform. In early 2004, other products from the government passed increases Czech Republic remains strong in the Value Added Tax (VAT) European Union. Rising inflation from higher food and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006. However, due energy prices are a risk to significant balanced economic growth. Significant increases in social spending in the run-up to June 2006 elections, elections prevented, the government is not likely from meeting its goal of reducing its budget deficit to meet this goal. 3% of GDP in 2007. Negotiations on pension and additional healthcare reforms are continuing without clear prospects for agreement and implementation. Privatization of the state-owned telecommunications firm Cesky Telecom took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth. The pro-business Civic Democratic Party-led government approved reforms in 2007 designed to cut spending on some social welfare benefits and reform the tax system with the aim of eventually reducing the budget deficit to 2.3% of GDP by 2010. Parliamentary approval for any additional reforms could prove difficult, however, because of the parliament's even split. The government withdrew a 2010 target date for euro adoption and instead aims to meet the eurozone criteria around 2012.
Entry published as “Czech Republic”.
Published as “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 euro area around 2012. The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and 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, fell 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 the Czech economy to contract slightly in 2009.
Rewritten: too little of the 2008 text remains to mark the changes.
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 euro area around 2012. The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and 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, fell 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 the Czech economy to contract slightly in 2009.
Entry published as “Czech Republic”.
Published as “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 small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and by 2.5% in 2008. The conservative Czech financial system has remained relatively healthy throughout 2009. Nevertheless, the real economy contracted by 4.1% in 2009, mainly due to a significant drop in external demand as the Czech Republic's main export markets fell into recession. GDP is expected to grow by 2.4% in 2010, driven largely by a rebound in external demand, particularly from Gremany.
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 euro area around 2012. The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and strong growth continued throughout the first three quarters of by 2.5% in 2008. Despite the global financial crisis, the The conservative Czech financial system has remained relatively healthy. The rate of Czech economic growth, however, fell in healthy throughout 2009. Nevertheless, the fourth quarter of 2008, real economy contracted by 4.1% in 2009, mainly due to a significant drop in external demand for as the Czech exports in Western Europe. This trend Republic's main export markets fell into recession. GDP is expected to continue, with many analysts predicting the Czech economy to contract slightly grow by 2.4% in 2009. 2010, driven largely by a rebound in external demand, particularly from Gremany.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is a stable and prosperous market economy, which harmonized its laws and regulations with those of the EU prior to its EU accession in 2004. While the conservative, inward looking Czech financial system has remained relative healthy, the small, open, export-driven Czech economy remains very sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports.
As a result, real GDP fell 4.1% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, has slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2010. The auto industry remains the largest single industry and, together with its suppliers, accounts for as much as 20% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported.
Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Rewritten: too little of the 2010 text remains to mark the changes.
The Czech Republic is a stable and prosperous market economy, which harmonized its laws and regulations with those of the EU prior to its EU accession in 2004. While the conservative, inward looking Czech financial system has remained relative healthy, the small, open, export-driven Czech economy remains very sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell 4.1% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, has slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2010. The auto industry remains the largest single industry and, together with its suppliers, accounts for as much as 20% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The same text in 2012 and 2013.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports.
As a result, real GDP fell 4.7% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2011. In 2012, however, the economy fell into a recession due to a slump in external demand. The auto industry remains the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing.
The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. Foreign and domestic businesses alike voice concerns about corruption especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The Czech Republic is a stable and prosperous market economy, which harmonized its laws and regulations economy closely integrated with those of the EU prior to its EU, especially since the country's EU accession in 2004. While the conservative, inward looking inward-looking Czech financial system has remained relative relatively healthy, the small, open, export-driven Czech economy remains very sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell 4.1% 4.7% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, has slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2010. 2011. In 2012, however, the economy fell into a recession due to a slump in external demand. The auto industry remains the largest single industry industry, and, together with its upstream suppliers, accounts for as much as 20% nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. Foreign and domestic businesses alike voice concerns about corruption, corruption especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany.
When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012, however, the economy fell into a recession again, due both to a slump in external demand and to the government’s austerity measures.
The country pulled out of recession in the second half of 2013, and most analysts expect modest, but steady, growth through 2014. Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell 4.7% sharply in 2009, with most of the decline occurring during the first quarter. Real GDP, however, 2009. The economy slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2011. registered weak growth in the next two years. In 2012, however, the economy fell into a recession again, due both to a slump in external demand. The auto industry remains demand and to the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. government’s austerity measures. The Czech Republic produced more than a million cars for the first time country pulled out of recession in 2010, over 80% the second half of which were exported. 2013, and most analysts expect modest, but steady, growth through 2014. Foreign and domestic businesses alike voice concerns about corruption corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Entry published as “Czech Republic”.
Published as “Economy - overview”
The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany.
When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012 and 2013, however, the economy fell into a recession again, due both to a slump in external demand in the EU and to the government’s austerity measures, returning to weak growth in 2014.
Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012, 2012 and 2013, however, the economy fell into a recession again, due both to a slump in external demand in the EU and to the government’s austerity measures. The country pulled out of recession in the second half of 2013, and most analysts expect modest, but steady, measures, returning to weak growth through in 2014. Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Published as “Economy - overview”
Czechia is a stable and prosperous market economy that is closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. Czechia produced more than a million cars for the first time in 2010, over 80% of which were exported.
While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009.
The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012 and 2013, however, the economy fell into a recession again, due both to a slump in external demand in the EU and to the government’s austerity measures, returning to weak growth in 2014, and stronger growth in 2015.
Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The Czech Republic Czechia is a stable and prosperous market economy that is closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic Czechia produced more than a million cars for the first time in 2010, over 80% of which were exported.
While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012 and 2013, however, the economy fell into a recession again, due both to a slump in external demand in the EU and to the government’s austerity measures, returning to weak growth in 2014. 2014, and stronger growth in 2015.
Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Published as “Economy - overview”
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, its central bank (Czech National Bank - CNB) has since November 2013 intervened in the foreign exchange markets to cap the value of the koruna at 27/Euro, with a 2% inflation target.
This intervention has also helped to keep exports competitively priced. After inflation exceeded the bank's 2% target in early 2017, the CNB indicated it expects to end its intervention in the first half of 2017, though it will continue to intervene as necessary to maintain stability of the currency.
After slowly recovering from a steep recession in 2009, the Czech economy again fell into recession in 2012 and 2013 because of a slump in demand within the EU and government austerity measures. Inflows of EU development funds underpinned a rebound in 2014-15. Real GDP growth reached 4.5% in 2015, in part due to last-minute spending of EU funds, and fell to 2.5% in 2016, still one of the highest rates in the EU. The Czech unemployment rate was 5.2% in 2016, one of the lowest rates in the EU.
Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages.
The country's low unemployment rate has led to steady increases in salaries – 4-5% in each of the past two years, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Rewritten: too little of the 2016 text remains to mark the changes.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, its central bank (Czech National Bank - CNB) has since November 2013 intervened in the foreign exchange markets to cap the value of the koruna at 27/Euro, with a 2% inflation target. This intervention has also helped to keep exports competitively priced. After inflation exceeded the bank's 2% target in early 2017, the CNB indicated it expects to end its intervention in the first half of 2017, though it will continue to intervene as necessary to maintain stability of the currency.
After slowly recovering from a steep recession in 2009, the Czech economy again fell into recession in 2012 and 2013 because of a slump in demand within the EU and government austerity measures. Inflows of EU development funds underpinned a rebound in 2014-15. Real GDP growth reached 4.5% in 2015, in part due to last-minute spending of EU funds, and fell to 2.5% in 2016, still one of the highest rates in the EU. The Czech unemployment rate was 5.2% in 2016, one of the lowest rates in the EU.
Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries – 4-5% in each of the past two years, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The same text in 2018 and 2019.
Published as “Economy - overview”
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013.
The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market. Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs.
The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, its it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) has since November 2013 intervened in the foreign exchange markets to ended its cap on the currency’s value of the koruna at 27/Euro, with a 2% inflation target. This intervention has also helped to keep exports competitively priced. After inflation exceeded the bank's 2% target in early 2017, the CNB indicated it expects to end its intervention in the first half of April 2017, though which it will continue to intervene as necessary to maintain stability of the currency. had maintained since November 2013. The CNB hiked rates in
After slowly recovering from a steep recession in 2009, the Czech economy again fell into recession2012 August and 2013 because of a slump in demand within November 2017 - the EU and government austerity measures. Inflows of EU development funds underpinned a rebound in 2014-15. Real GDP growth reached 4.5% in 2015, first rate changes in part due nine years - to last-minute spending of EU funds, address rising inflationary pressures brought by strong economic growth and fell to 2.5% in 2016, still one of the highest rates in the EU. The Czech unemployment rate was 5.2% in 2016, one of the lowest rates in the EU.a tight labor market. Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries – 4-5% in each of the past two years, salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013.
The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market. Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs.
The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013. The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market. Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries. Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
The same text in 2021 and 2022.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013. The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market.
Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages.
The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013. The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market.
Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.
Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.
- high income, diversified EU economy;
- advanced services and automotive exporter;
- mostly intra-EU trader;
- low unemployment;
- usually maintains a positive trade balance;
- large investments in systems innovation and information technologies
Rewritten: too little of the 2022 text remains to mark the changes.
high income, diversified EU economy; advanced services and automotive exporter; mostly intra-EU trader; low unemployment; usually maintains a positive trade balance; large investments in systems innovation and information technologies
- high-income, diversified EU economy;
- manufacturing-oriented exporter led by automotive industry;
- growth stalled by inflation and energy supply disruption;
- business-friendly regulatory frameworks;
- tight labor market with low unemployment;
- seeking reforms to support decarbonization and improve energy efficiency
Rewritten: too little of the 2023 text remains to mark the changes.
high-income, diversified EU economy; manufacturing-oriented exporter led by automotive industry; growth stalled by inflation and energy supply disruption; business-friendly regulatory frameworks; tight labor market with low unemployment; seeking reforms to support decarbonization and improve energy efficiency
- high-income, diversified EU economy;
- manufacturing-oriented exporter led by automotive industry;
- moderate growth driven by household consumption and investments, despite negative contribution from net exports;
- tight labor market with low unemployment;
- gained energy independence from Russian oil in April 2025
high-income, diversified EU economy; manufacturing-oriented exporter led by automotive industry; moderate growth stalled driven by inflation household consumption and energy supply disruption; business-friendly regulatory frameworks; investments, despite negative contribution from net exports; tight labor market with low unemployment; seeking reforms to support decarbonization and improve gained energy efficiency independence from Russian oil in April 2025
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Cite this page
Central Intelligence Agency. “Czechia: Economic overview.” The World Factbook, 1993–2025 editions. Archived by The Factbook, thefactbook.org/czechia/economic-overview.