Czech Republic Economy Profile 2008

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.

GDP (purchasing power parity)

$249.1 billion (2007 est.)

GDP (official exchange rate)

$168.1 billion (2007 est.)

GDP - real growth rate

5.7% (2007 est.)

GDP - per capita (PPP)

$24,400 (2007 est.)

GDP - composition by sector

agriculture: 2.4%
industry: 39.7%
services: 57.9% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 4.3%
highest 10%: 22.4% (1996)

Inflation rate (consumer prices)

2.6% (2007 est.)

Investment (gross fixed)

25.8% of GDP (2007 est.)

Labor force

5.35 million (2007 est.)

Labor force - by occupation

agriculture: 4.1%
industry: 37.6%
services: 58.3% (2003)

Unemployment rate

6.6% (2007 est.)

Distribution of family income - Gini index

26 (2005)

Budget

revenues: $69.49 billion
expenditures: $75.8 billion (2007 est.)

Public debt

31.1% of GDP (2007 est.)

Industries

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

Industrial production growth rate

9% (2007 est.)

Electricity - production

77.38 billion kWh (2005)

Electricity - consumption

59.72 billion kWh (2005)

Electricity - exports

24.99 billion kWh (2005)

Electricity - imports

12.35 billion kWh (2005)

Oil - production

18,030 bbl/day (2005)

Oil - consumption

213,000 bbl/day (2005 est.)

Oil - imports

203,700 bbl/day (2004)

Oil - exports

20,930 bbl/day (2004)

Oil - proved reserves

15 million bbl (1 January 2006 est.)

Natural gas - production

165 million cu m (2005 est.)

Natural gas - consumption

9.076 billion cu m (2005 est.)

Natural gas - exports

81.52 million cu m (2005 est.)

Natural gas - imports

8.976 billion cu m (2005)

Natural gas - proved reserves

3.802 billion cu m (1 January 2006 est.)

Current Account Balance

-$5.701 billion (2007 est.)

Agriculture - products

wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

Exports

$113 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

Germany 32%, Slovakia 8.5%, Poland 5.7%, France 5.5%, Austria 5.1%, UK 4.8%, Italy 4.6% (2006)

Imports

$109.8 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

Germany 32.5%, Netherlands 6.8%, Slovakia 6.2%, Poland 6.1%, Russia 5.7%, Austria 5%, Italy 4.4%, France 4.3% (2006)

Reserves of foreign exchange and gold

$32.32 billion (31 December 2007 est.)

Debt - external

$61.74 billion (30 June 2007)

Stock of direct foreign investment - at home

$77.46 billion (2006 est.)

Stock of direct foreign investment - abroad

$5.058 billion (2006 est.)

Market value of publicly traded shares

$48.6 billion (2006)

Economic aid - recipient

$278.7 million in available EU structural adjustment and cohesion funds (2004)

Currency (code)

Czech koruna (CZK)

Exchange rates

koruny per US dollar - 20.53 (2007), 22.596 (2006), 23.957 (2005), 25.7 (2004), 28.209 (2003)

Fiscal year

calendar year