Czech Republic: 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.

Economy - overview:

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 (purchasing power parity):

$253.1 billion (2009 est.)
country comparison to the world: 44
$263.9 billion (2008 est.)
$257.5 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$190.3 billion (2009 est.)

GDP - real growth rate:

-4.1% (2009 est.)
country comparison to the world: 182
2.5% (2008 est.)
6.1% (2007 est.)

GDP - per capita (PPP):

$24,800 (2009 est.)
country comparison to the world: 53
$25,800 (2008 est.)
$25,200 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 2.2%
industry: 37.7%
services: 60.1% (2009 est.)

Labor force:

5.401 million (2009 est.)
country comparison to the world: 69

Labor force - by occupation:

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

Unemployment rate:

8.1% (2009 est.)
country comparison to the world: 90
5.4% (2008 est.)

Investment (gross fixed):

22.4% of GDP (2009 est.)
country comparison to the world: 67

Budget:

revenues: $78.69 billion
expenditures: $89.85 billion (2009 est.)

Inflation rate (consumer prices):

1% (2009 est.)
country comparison to the world: 49
6.3% (2008 est.)

Agriculture - products:

Industries:

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

Industrial production growth rate:

-10.1% (2009 est.)
country comparison to the world: 143

Oil - production:

10,970 bbl/day (2009 est.)
country comparison to the world: 83

Natural gas - production:

176 million cu m (2009 est.)
country comparison to the world: 76

Current account balance:

-$2.146 billion (2009 est.)
country comparison to the world: 152
-$1.255 billion (2008 est.)

Exports:

$112.6 billion (2009 est.)
country comparison to the world: 32
$146.2 billion (2008 est.)

Exports - commodities:

machinery and transport equipment, raw materials and fuel, chemicals

Exports - partners:

Germany 32.25%, Slovakia 9.02%, Poland 5.8%, France 5.62%, UK 4.93%, Austria 4.72%, Italy 4.38% (2009)

Imports:

$103.1 billion (2009 est.)
country comparison to the world: 30
$139.9 billion (2009 est.)

Imports - commodities:

machinery and transport equipment, raw materials and fuels, chemicals

Imports - partners:

Germany 30.67%, Poland 6.97%, Slovakia 6.6%, Netherlands 5.99%, China 5.7%, Austria 5.26%, Russia 4.93%,  Italy 3.98% (2009)

Debt - external:

$82.42 billion (31 December 2009 est.)
country comparison to the world: 37
$80.73 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$121.9 billion (31 December 2009 est.)
country comparison to the world: 28
$113.2 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$14.35 billion (31 December 2009 est.)
country comparison to the world: 44
$12.53 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook