Czech Republic

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Economics

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.

GDP (purchasing power parity):

 

$261.3 billion (2010 est.)

country comparison to the world: 44

$255.4 billion (2009 est.)

$266.4 billion (2008 est.)

note: data are in 2010 US dollars

GDP (official exchange rate):

$192.2 billion (2010 est.)

GDP - real growth rate:

2.3% (2010 est.)

country comparison to the world: 140

-4.1% (2009 est.)

2.5% (2008 est.)

GDP - per capita (PPP):

$25,600 (2010 est.)

country comparison to the world: 52

$25,000 (2009 est.)

$26,100 (2008 est.)

note: data are in 2010 US dollars

GDP - composition by sector:

 

agriculture: 2.4%

industry: 37.6%

services: 60% (2010 est.)

Labor force:

5.415 million (2010 est.)

country comparison to the world: 70

Labor force - by occupation:

 

agriculture: 3.1%

industry: 38.6%

services: 58.3% (2009)

Unemployment rate:

 

9% (2010 est.)

country comparison to the world: 101

8.1% (2009 est.)

Population below poverty line:

NA%

Household income or consumption

by percentage share:

lowest 10%: 1.5%

highest 10%: NA (2009)

Distribution of family income - Gini index:

 

26 (2005)

country comparison to the world: 137

25.4 (1996)

Investment (gross fixed):

 

21.3% of GDP (2010 est.)

country comparison to the world: 98

Budget:

 

revenues: $77.73 billion

expenditures: $86.76 billion (2010 est.)

Taxes and other revenues:

 

40.5% of GDP (2010 est.)

country comparison to the world: 42

Budget surplus (+) or deficit (-):

-4.7% of GDP (2010 est.)

country comparison to the world: 138

Public debt:

 

38.9% of GDP (2010 est.)

country comparison to the world: 72

35.6% of GDP (2009 est.)

Inflation rate (consumer prices):

 

1.5% (2010 est.)

country comparison to the world: 48

1% (2009 est.)

Central bank discount rate:

 

0.75% (31 December 2010 est.)

country comparison to the world: 132

1% (31 December 2009 est.)

note: the two-week repo rate was 0.75% on 31 December 2010; this is the main rate CNB uses

Commercial bank prime lending rate:

 

5.889% (31 December 2010 est.)

country comparison to the world: 149

5.991% (31 December 2009 est.)

Stock of narrow money:

 

$107.8 billion (31 December 2010 est.)

country comparison to the world: 30

$96.46 billion (31 December 2009 est.)

Stock of broad money:

 

$144.4 billion (31 December 2010 est.)

country comparison to the world: 46

$144.2 billion (31 December 2009 est.)

Stock of domestic credit:

 

$126.5 billion (31 December 2010 est.)

country comparison to the world: 45

$123.3 billion (31 December 2009 est.)

Market value of publicly traded shares:

$73.1 billion (31 December 2010)

country comparison to the world: 46

$70.26 billion (31 December 2009)

$57.8 billion (31 December 2008)

Agriculture - products:

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

Industries:

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

Industrial production growth rate:

 

10.3% (2010 est.)

country comparison to the world: 25

Electricity - production:

77.02 billion kWh (2009 est.)

country comparison to the world: 37

Electricity - consumption:

 

53.42 billion kWh (2009 est.)

country comparison to the world: 44

Electricity - exports:

22.23 billion kWh (2009 est.)

Electricity - imports:

13.64 billion kWh (2009 est.)

Oil - production:

 

10,310 bbl/day (2010 est.)

country comparison to the world: 86

Oil - consumption:

195,700 bbl/day (2010 est.)

country comparison to the world: 58

Oil - exports:

 

25,480 bbl/day (2009 est.)

country comparison to the world: 86

Oil - imports:

208,800 bbl/day (2009 est.)

country comparison to the world: 47

Oil - proved reserves:

 

15 million bbl (1 January 2011 est.)

country comparison to the world: 85

Natural gas - production:

 

203 million cu m (2010 est.)

country comparison to the world: 76

Natural gas - consumption:

 

9.308 billion cu m (2010 est.)

country comparison to the world: 48

Natural gas - exports:

159 million cu m (2010 est.)

country comparison to the world: 44

Natural gas - imports:

8.51 billion cu m (2010 est.)

country comparison to the world: 26

Natural gas - proved reserves:

 

3.964 billion cu m (1 January 2011 est.)

country comparison to the world: 93

Current account balance:

 

-$7.188 billion (2010 est.)

country comparison to the world: 179

-$4.849 billion (2009 est.)

Exports:

 

$116.7 billion (2010 est.)

country comparison to the world: 33

$99.13 billion (2009 est.)

Exports - commodities:

machinery and transport equipment, raw materials and fuel, chemicals

Exports - partners:

 

Germany 31.7%, Slovakia 8.7%, Poland 6.2%, France 5.5%, UK 4.9%, Austria 4.7%, Italy 4.5% (2010 est.)

Imports:

 

$113.9 billion (2010 est.)

country comparison to the world: 31

$94.55 billion (2009 est.)

Imports - commodities:

 

machinery and transport equipment, raw materials and fuels, chemicals

Imports - partners:

 

Germany 25.6%, China 11.9%, Poland 6.5%, Russia 5.4%, Slovakia 5.2% (2010 est.)

Reserves of foreign exchange and gold:

 

$41.95 billion (31 December 2010 est.)

country comparison to the world: 42

$41.2 billion (31 December 2009 est.)

Debt - external:

 

$86.53 billion (31 December 2010 est.)

country comparison to the world: 40

$82.14 billion (31 December 2009 est.)

Stock of direct foreign investment - at home:

 

$129.9 billion (31 December 2010 est.)

country comparison to the world: 28

$125.8 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad:

$15.52 billion (31 December 2010 est.)

country comparison to the world: 47

$14.81 billion (31 December 2009 est.)

Exchange rates:

 

koruny (CZK) per US dollar -

19.111 (2010)

19.063 (2009)

17.064 (2008)

20.53 (2007)

22.596 (2006)