The Czech republic offers a stable, prosperous economy fueled by its exports to EU. The following is a an economic snapshot on this Eastern European country.

  • Real GDP: $175.3 billion
  • Real GDP growth forecast: 4.7% in 2008, 5.4% in 2009
    • Slowed by US credit crunch, will begin to expand again

The Czech Future:

  • Domestic demand will drive economic expansion in 2008
  • Led by new availability of credit cards, mortgages
  • In 2009, GDP boost will come mostly from trade (exports)

Unemployment: 6.6% (2007)
Inflation: 2.0% (2007 CPI est.)
Current Account Balance: -$3.8 billion
Currency: The Czech government and the central bank have reached an agreement on measures designed to stem the appreciation of the currency

Median Age

  • male: 38.2 years
  • female: 41.6 years

Sex Ratio

  • under 15 years: 1.06 male(s)/female
  • 15-64 years: 1.01 male(s)/female
  • 65 years and over: 0.65 male(s)/female

Per Capita Income: $24,400

One of Eastern Europe’s highest life expectancies

  • Life expectancy at birth: 79 years
  • Behind only Germany and Slovenia

Recent News

  • The Czech cabinet endorsed the first draft of a healthcare reform bill in April 2008.

Economic Trends

  • The Restructuring of Czech firms allows for more US FDI
  • Rapid growth in use of cell phones
  • Privatization of telecommunications was slow starting
  • Financial Sector not exposed to int’l credit crunch
  • Czech Komercni Bank not affected by parent SocGen scandal
  • EU funds bolstering the Czech economy

Economic structure

  • 58% occupations in services sector
  • Sale of CZK150bn in state-owned firms

Tourism

  • 5% growth in 2005 has slowed to 1%

Automotive

  • 2008 opening of Hyundai plant
  • Industry to double from 2005 to 2011