Czech Republic Economy 2008

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 2000-07 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 the availability of credit cards and mortgages increases. The current account deficit has declined to around 3.3% of GDP as demand for automotive and other products from the Czech Republic remains strong in the European Union. Rising inflation from higher food and energy prices are a risk to balanced economic growth. Significant increases in social spending in the run-up to June 2006 elections prevented, the government from meeting its goal of reducing its budget deficit to 3% of GDP in 2007. Negotiations on pension and additional healthcare reforms are continuing without clear prospects for agreement and implementation. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth. The pro-business Civic Democratic Party-led government approved reforms in 2007 designed to cut spending on some social welfare benefits and reform the tax system with the aim of eventually reducing the budget deficit to 2.3% of GDP by 2010. Parliamentary approval for any additional reforms could prove difficult, however, because of the parliament's even split. The government withdrew a 2010 target date for euro adoption and instead aims to meet the eurozone criteria around 2012.

GDP (purchasing power parity):
$249.1 billion (2007 est.)

GDP (official exchange rate):
$128.9 billion (2007 est.)

GDP - real growth rate:
5.7% (2007 est.)

GDP - per capita (PPP):
$24,400 (2007 est.)

GDP - composition by sector:
agriculture: 2.4%
industry: 39.7%
services: 57.9% (2007 est.)

Labor force:
5.35 million (2007 est.)

Labor force - by occupation:
agriculture: 4.1%
industry: 37.6%
services: 58.3% (2003)

Unemployment rate:
6.6% (2007 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 4.3%
highest 10%: 22.4% (1996)

Distribution of family income - Gini index:
26 (2005)

Inflation rate (consumer prices):
2.6% (2007 est.)

Investment (gross fixed):
25.8% of GDP (2007 est.)

Budget:
revenues: $69.49 billion
expenditures: $75.8 billion (2007 est.)

Public debt:
31.1% of GDP (2007 est.)

Agriculture - products:
wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

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

Industrial production growth rate:
9% (2007 est.)

Electricity - production:
77.38 billion kWh (2005)

Electricity - consumption:
59.72 billion kWh (2005)

Electricity - exports:
24.99 billion kWh (2005)

Electricity - imports:
12.35 billion kWh (2005)

Oil - production:
18,030 bbl/day (2005)

Oil - consumption:
213,000 bbl/day (2005 est.)

Oil - exports:
20,930 bbl/day (2004)

Oil - imports:
203,700 bbl/day (2004)

Oil - proved reserves:
15 million bbl (1 January 2006 est.)

natural gas - production:
165 million cu m (2005 est.)

natural gas - consumption:
9.076 billion cu m (2005 est.)

natural gas - exports:
81.52 million cu m (2005 est.)

natural gas - imports:
8.976 billion cu m (2005)

natural gas - proved reserves:
3.802 billion cu m (1 January 2006 est.)

Current account balance:
-$5.701 billion (2007 est.)

Exports:
$113 billion f.o.b. (2007 est.)

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

Exports - partners:
Germany 31.9%, Slovakia 8.5%, Poland 5.7%, France 5.6%, Austria 5.1%, UK 4.8%, Italy 4.6% (2006)

Imports:
$109.8 billion f.o.b. (2007 est.)

Imports - partners:
Germany 32%, Netherlands 6.5%, Slovakia 6.1%, Poland 6.1%, Russia 5.7%, Austria 4.9%, Italy 4.4%, France 4.4% (2006)

Economic aid - recipient:
$278.7 million in available EU structural adjustment and cohesion funds (2004)

Reserves of foreign exchange and gold:
$32.32 billion (31 December 2007 est.)

Debt - external:
$61.74 billion (30 June 2007)

Stock of direct foreign investment - at home:
$77.46 billion (2006 est.)

Stock of direct foreign investment - abroad:
$5.058 billion (2006 est.)

Market value of publicly traded shares:
$48.6 billion (2006)

Currency (code):
Czech koruna (CZK)

Exchange rates:
koruny per US dollar - 20.53 (2007), 22.596 (2006), 23.957 (2005), 25.7 (2004), 28.209 (2003)