Czech Republic Economy Profile 2009

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.

GDP (purchasing power parity)

$265.2 billion (2008 est.)
$257.4 billion (2007 est.)
$242.6 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$217.1 billion (2008 est.)

GDP - real growth rate

3% (2008 est.)
6.1% (2007 est.)
6.8% (2006 est.)

GDP - per capita (PPP)

$25,900 (2008 est.)
$25,200 (2007 est.)
$23,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2.3%
industry: 37.6%
services: 60.1% (2008 est.)

Population below poverty line

NA%

Labor force

5.36 million (2008 est.)

Labor force - by occupation

agriculture: 3.6%
industry: 40.2%
services: 56.2% (2007)

Unemployment rate

5.4% (2008)
6.6% (2007 est.)

Household income or consumption by percentage share

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

Distribution of family income - Gini index

26 (2005)
25.4 (1996)

Investment (gross fixed)

24% of GDP (2008 est.)

Budget

revenues: $93.42 billion
expenditures: $96.09 billion (2008 est.)

Public debt

26.8% of GDP (2008 est.)
33.5% of GDP (2004 est.)

Inflation rate (consumer prices)

6.3% (2008)
2.9% (2007 est.)

Central bank discount rate

2.25% (31 December 2008)
3.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
5.79% (31 December 2007)

Stock of money

$86.55 billion (31 December 2008)
$84.43 billion (31 December 2007)

Stock of quasi money

$58.6 billion (31 December 2008)
$58.77 billion (31 December 2007)

Stock of domestic credit

$109.3 billion (31 December 2008)
$103.9 billion (31 December 2007)

Industries

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

Industrial production growth rate

3.8% (2008 est.)

Electricity - production

82.88 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 76.1%
hydro: 2.9%
nuclear: 20%
other: 1% (2001)

Electricity - consumption

61.52 billion kWh (2006 est.)

Electricity - exports

26.36 billion kWh (2007 est.)

Electricity - imports

10.2 billion kWh (2007 est.)

Oil - production

13,530 bbl/day (2007 est.)

Oil - consumption

207,400 bbl/day (2007 est.)

Oil - imports

224,600 bbl/day (2005)

Oil - exports

27,360 bbl/day (2005)

Oil - proved reserves

15 million bbl (1 January 2008 est.)

Natural gas - production

172 million cu m (2007 est.)

Natural gas - consumption

8.622 billion cu m (2007 est.)

Natural gas - exports

402 million cu m (2007 est.)

Natural gas - imports

8.628 billion cu m (2007 est.)

Natural gas - proved reserves

3.964 billion cu m (1 January 2008 est.)

Current Account Balance

-$6.642 billion (2008 est.)
-$5.655 billion (2007 est.)

Agriculture - products

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

Exports

$145.7 billion (2008 est.)
$122.7 billion (2007 est.)

Exports - commodities

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

Exports - partners

Germany 30.6%, Slovakia 9.2%, Poland 6.5%, France 5.3%, UK 4.8%, Austria 4.7%, Italy 4.6% (2008)

Imports

$139.4 billion (2008 est.)
$116.8 billion (2007 est.)

Imports - commodities

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

Imports - partners

Germany 30.3%, Slovakia 6.6%, Poland 6.4%, Russia 6.2%, Netherlands 5.6%, Austria 5.2%, China 4.9%, Italy 4.1% (2008)

Reserves of foreign exchange and gold

$36.68 billion (31 December 2008 est.)
$34.59 billion (31 December 2007 est.)

Debt - external

$80.43 billion (31 December 2008)
$76.04 billion (31 December 2007)

Stock of direct foreign investment - at home

$111.9 billion (31 December 2008 est.)
$101.1 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$8.87 billion (31 December 2008 est.)
$6.971 billion (31 December 2007 est.)

Market value of publicly traded shares

$48.85 billion (31 December 2008)
$73.42 billion (31 December 2007)
$48.6 billion (31 December 2006)

Economic aid - recipient

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

Currency (code)

Czech koruna (CZK)

Currency (code)

CZK

Exchange rates

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

Fiscal year

calendar year