Czech Republic Business Resources

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 2000-04 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 interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 5% of GDP are beginning to decline as demand for Czech products in the European Union increases. Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom is scheduled to take place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.

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

Airlines
Airlines in Europe
Airlines Worldwide

Airports
Airports in Europe
Airports Worldwide

Country Budget
revenues: $39.31 billion
expenditures: $45.8 billion, including capital expenditures of NA (2004 est.)

Currency (code)
Czech koruna (CZK)

Currency Exchange Rate
koruny per US dollar - 25.7 (2004), 28.209 (2003), 32.739 (2002), 38.035 (2001), 38.598 (2000)

Fiscal Year
calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $172.2 billion (2004 est.)
GDP - real growth rate: 3.7% (2004 est.)
GDP - per capita: purchasing power parity - $16,800 (2004 est.)
GDP - composition by sector:
agriculture: 3.4%
industry: 39.3%
services: 57.3% (2004 est.)

Imports / Exports
Exports: $66.51 billion f.o.b. (2004 est.)
Exports - commodities: machinery and transport equipment 52%, chemicals 5%, raw materials and fuel 9% (2003)
Exports - partners: Germany 36.1%, Slovakia 8.4%, Austria 6%, Poland 5.3%, UK 4.7%, France 4.7%, Italy 4.3%, Netherlands 4.3% (2004)

Imports: $68.19 billion f.o.b. (2004 est.)
Imports - commodities: machinery and transport equipment 46%, raw materials and fuels 15%, chemicals 10% (2003)
Imports - partners: Germany 31.7%, Slovakia 5.4%, Italy 5.3%, China 5.2%, Poland 4.8%, France 4.8%, Russia 4.1% (2004)

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

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force: 5.25 million (2004 est.)
Labor force - by occupation: agriculture 4%, industry 38%, services 58% (2002 est.)
Unemployment rate: 10.6% (2004 est.)