Czech Republic Economy: from the All Country Info reference guide to country facts

Czech Republic Economy

Czech Republic Economy: A summary of information about Czech Republic Economy, from government research data as well as independent research and other sources.

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Czech Republic: Economy

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.
GDP
purchasing power parity - $120.8 billion (1999 est.)
GDP - real growth rate
-0.5% (1999 est.)
GDP - per capita
purchasing power parity - $11,700 (1999 est.)
GDP - composition by sector
agriculture: 5%
industry: 42%
services: 53% (1999 est.)
Population below poverty line
NA%
Household income or consumption by percentage share
lowest 10%: 4.6%
highest 10%: 23.5% (1993)
Inflation rate (consumer prices)
2.5% (1999 est.)
Labor force
5.203 million (1999 est.)
Labor force - by occupation
industry 32%, agriculture 5.6%,
construction 8.7%, transport and communications 6.9%, services 46.8%
(1997 est.)
Unemployment rate
9% (1999 est.)
Budget
revenues: $16.4 billion
expenditures: $17.3 billion, including capital expenditures of $NA
(1999)
Industries
fuels, ferrous metallurgy, machinery and equipment, coal,
motor vehicles, glass, armaments
Industrial production growth rate
-4% (1999 est.)
Electricity - production
61.466 billion kWh (1998)
Electricity - production by source
fossil fuel: 75.54%
hydro: 2.55%
nuclear: 20.37%
other: 1.54% (1998)
Electricity - consumption
54.733 billion kWh (1998)
Electricity - exports
10.8 billion kWh (1998)
Electricity - imports
8.37 billion kWh (1998)
Agriculture - products
grains, potatoes, sugar beets, hops, fruit;
pigs, cattle, poultry; forest products
Exports
$26.9 billion (f.o.b., 1999)
Exports - commodities
machinery and transport equipment 41%, other
manufactured goods 40%, chemicals 8%, raw materials and fuel 7% (1998)
Exports - partners
Germany 42%, Slovakia 8%, Austria 6%, Poland 6%,
France 4% (1999)
Imports
$29 billion (f.o.b., 1999)
Imports - commodities
machinery and transport equipment 39%, other
manufactured goods 21%, chemicals 12%, raw materials and fuels 10%,
food 5% (1998)
Imports - partners
Germany 34%, Slovakia 6%, Russia 6%, Austria 6%,
France 5% (1999)
Debt - external
$24.3 billion (1999 est.)
Economic aid - recipient
$351.6 million (1995)
Currency
1 koruna (Kc) = 100 haleru
Exchange rates
koruny (Kcs) per US$1 - 35.630 (December 1999), 34.569
(1999), 32.281 (1998), 31.698 (1997), 27.145 (1996), 26.541 (1995)
Fiscal year
calendar year
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