Led by score increases in rule of law, the Czech Republic has recorded a 1.1-point overall gain of economic freedom since 2017 and has climbed higher among the Mostly Free countries. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.
[50] Dividends worth CZK 289 billion were paid to the foreign owners of Czech companies in 2016.[51]. The elections will likely result in another extended period to form a new government (the current administration was formed after nine months of negotiations). As of 2022, the Czech GDP per capita at purchasing power parity is $46,811 and $28,077 at nominal value.
Headline- and core inflation are forecast to converge in the first half of 2023. [34] The Czech Republic ranks 21st in the Index of Economic Freedom (ranked behind Chile),[35] 24th in the Global Innovation Index (ranked behind Australia),[36] 32nd in the Global Competitiveness Report,[37] 41st in the ease of doing business index and 25th in the Global Enabling Trade Report (ranked behind Canada). [34] The Czech healthcare system ranks 13th in the 2016 Euro health consumer index. The judiciarys independence is largely respected, although its complexity has led to slow delivery of judgments. The Czech Republic economy is highly integrated into international value chains, and at almost 70%, the export-to-GDP ratio is one of the highest in the EU.
Now completed,[citation needed] the program has made Czechs, who own shares of each of the Czech companies, one of the highest per-capita share owners in the world. Inflation: 0.7% (2016) East-central Europe unites to support Ukraine, War in Ukraine will weaken east European economies, Visegrad countries struggle to contain inflation, War in Ukraine breathes new life into NATO, for now, Czech central bank divided over approach to record inflation, Europe chart of the week: governments face policy challenges, Inflation in the Czech Republic surpasses 17% in June. Trade Freedom 79.2 Create a Graph using this measurement, Investment Freedom 70.0 Create a Graph using this measurement, Financial Freedom 80.0 Create a Graph using this measurement. Tier 1 capital ratio is high at 21.4%, and more than a quarter of banks assets are liquid. Direct access to our data from your apps using any programing language. GDP Growth: 2.6% (2016) The Czech Republics economic freedom score is 74.4, making its economy the 21st freest in the 2022 Index. Current Account balance: $2.216 billion (2018) Export partners: Germany 32.4%, Slovakia 8.4%, Poland 5.8%, UK 5.2%, France 5.2%, Italy 4.3%, Austria 4.2% (2016) Following a series of currency devaluations, the crown has remained stable in relation to the US dollar. Due to economic repercussions caused by the coronavirus pandemic, Czech Republic GDP contracted by 5.8% year-on-year in 2020.
The government established a restructuring agency in 1999 and launched a revitalization program to spur the sale of firms to foreign companies. Disagreements among the ruling parties could be a source of instability in the medium term. [60] As of 2019, the financing models and contractor selection for the planned reactors are being negotiated by the government. Current job openings: Download historical data for 20 million indicators using your browser. This followed a worldwide trend to divest from developing countries that year. Recent accession to the EU gives further impetus and direction to structural reform. From 2009 to 2012, Czech Republic suffered highest state budget deficits in history of independent Czech Republic. Over the remainder of 2022, economic growth is projected to stagnate as increases in the cost of finance and reduced real income continue to drag on economic activity. The Czech Republic economy was seen expanding by 0.7 percent quarter-over-quarter in the first three months of 2022, slowing slightly from a downwardly revised 0.8 percent advance in the previous period and beat market expectations of a 0.3 percent expansion, preliminary estimates showed. It is a member of the Organisation for Economic Co-operation and Development (OECD). As vaccination campaigns are underway, the world economy is recovering from the pandemic. In June, the manufacturing purchasing manager index climbed to an all-time high of 62.7, fuelled by new orders, in particular from abroad. The machinery sector is forecast to grow by more than 6% this year, due to the recovery of domestic industrial production and higher demand from abroad. By 1998, more than 80% of enterprises were in private hands. 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 Czech economy will therefore be subject to exceptionally high and broad-based inflation over 2022, and is set to experience second-round effects on for instance wages, which contribute to the height and persistence of inflation. The Czech Republic has an additional 83 country-specific nontariff barriers.
From the financial crisis of 20072010, Czech Republic is in stagnation or decreasing of GDP. The Czech industrial tradition dates back to the 19th century, when the Lands of the Bohemian Crown were the economic and industrial heartland of the Austrian Empire and later the Austrian side of Austria-Hungary. Please refer to the actual policy or the relevant product or services agreement for the governing terms. The Czech Republic has a highly diverse economy that ranks 7th in the 2019 Economic Complexity Index. Unstable governments will struggle to implement adequate policies amid increased political strife and social unrest. The credit portion of the Financial crisis of 20072010 did not affect the Czech Republic much, mostly due to its stable banking sector which has learned its lessons during a smaller crisis in the late 1990s and became much more cautious. Property rights are relatively well protected, and contracts are generally secure. However, due to an informal tolerance agreement, the government has enjoyed the principal backing of the pro-Russian Czech Communist Party. [42], The "Velvet Revolution" in 1989, offered a chance for profound and sustained political and economic reform. Zem ale zstv i vznamnm exportrem energie, Nov jadern blok v Dukovanech by ml stt maximln 200 miliard korun, v Drbov, Nejlep reference na stavbu novch reaktor v esku maj Korejci, tvrd Drbov, Nov jadern zdroje budou financovny dceinmi firmami skupiny EZ, rozhodla vlda, "Report for Selected Countries and Subjects", Unemployment rates, seasonally adjusted, July 2016, "CEE Basic Data - Key economic indicators and forecasts", IT and telecommunications in Central and Eastern Europe, OECD Economic Survey of the Czech Republic, Maldonado, Carlos Gustavo: Repblica checa, transicin del socialismo de Estado a la economa de mercado - En: economa de posguerra, blog de historia econmica global, Economy of the Czech Republic Annual Trends, World Bank Summary Trade Statistics Czech Republic, Organisation for Economic Co-operation and Development (OECD), Convention on the Organisation for Economic Co-operation and Development, https://en.wikipedia.org/w/index.php?title=Economy_of_the_Czech_Republic&oldid=1097209368, Short description is different from Wikidata, Wikipedia articles in need of updating from January 2022, All Wikipedia articles in need of updating, Articles with unsourced statements from December 2008, Articles with unsourced statements from January 2009, Articles with hatnote templates targeting a nonexistent page, Creative Commons Attribution-ShareAlike License 3.0. according to the Czech Statistical Office: Benacek, Vladimir: economics of alliances and (dis)integration, an alternative interpretation of transition illustrated on Czech economic history (June 2002) - 25 p. Horvath, Julius: the Czech currency crisis of 1997 - En: Dabrovski, Marek: currency crises in emerging markets - New York: Springer, 2003 - p.221-234, OECD: economic surveys, Czech republic, 1991-2018 (OECD iLibrary), Zidek, Libor: from central planning to the market, the transformation of the Czech economy 1989-2004 Budapest: CEU press, 2017, This page was last edited on 9 July 2022, at 10:18. Czech Investment Abroad: $43.09 billion (31 December 2016) The resilient banking sector offers a wide range of financial products. In response to the crisis, two austerity packages were introduced later in the spring (called vernacularly "The Packages"), which cut government spending by 2.5% of GDP. Czech metals output is expected to increase by 10% in 2021, after an 8% contraction last year. Public debt is expected to remain rather resilient against interest rate and exchange rate shocks. Key priorities included accelerating legislative convergence with EU norms, restructuring enterprises, and privatising banks and utilities. On a yearly basis, the economy expanded by 3.1 percent, above an earlier estimate of a 2.8 percent rise. Within the EU, it is the second most dependent country on Russian gas, and is facing a mass influx of refugees fleeing Ukraine. Today, this heritage is both an asset and a liability. The voucher holders could then invest their vouchers, increasing the capital base of the chosen company, and creating a nation of citizen share-holders. The risk of corruption, patronage, and nepotism in the public procurement sector and public administration is regarded as especially problematic.
In accordance with Stalin's development policy of planned interdependence, all the economies of the socialist countries were tightly linked to that of the Soviet Union.
The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation that maintains a high-income welfare state and the European social model. See how Czech Republic compares to another country using any of the measures in the Index.
While ANO 2011 is expected to remain the strongest party in parliament after the elections, its ability to form a coalition government that holds a majority in parliament is far from certain. 2022 Data - 2023 Forecast - 1995-2021 Historical, Czech Inflation Rate Hits Highest Level Since 1993, Czech Jobless Rate Falls Further to Over 2-Year Low, Czech Retail Sales Fall More than Expected in May, Czech Construction Output Growth at 7-Month Low, Czech May Industrial Output Unexpectedly Rebounds, Czech Republic Factory Activity Unexpectedly Contracts, Czech Republic Consumer Morale at Over 10-Year Low, Australia Services PMI Eases to 6-Month Low, Australia Manufacturing PMI Falls in July, UK Consumer Confidence Stays at Record Low. GDP per capita (nom. [59] This 2015-approved energy strategy expects construction of an additional nuclear reactor in the Temeln Nuclear Power Station and another one in the Dukovany Nuclear Power Station with the possibility of further expansion to two reactors in each power station. Russias invasion has further divided the world into opposing camps, but splits within NATO will emerge again.
[30] The Czech Republic participates in the European Single Market as a member of the European Union, and is therefore a part of the economy of the European Union. However, since Q2 of 2021 the Czech economic rebound is gaining momentum, supported domestically by declining coronavirus cases, accelerated vaccination rollout (by early September about 54% of the population have been fully vaccinated), and the lifting of restrictions. The investment framework generally facilitates new business activities. [citation needed]. However, as a large exporter, the economy was sensitive to the decrease of the demand in Germany and other trading partners. As inflation has increased above its upper target rate of 2%, the Central Bank has decided to focus on inflation targeting instead of further supporting the business cycle (in 2020 it had cut rates by 200 basis points).
The European Union funded 59 percent of the Czech Republics subsidies for the 2014 to 2020 programming period. Inflation is foreseen to decline afterwards, when the impact of the loss of real income and the effectiveness of tightened monetary policy are expected to prevail. Since then, consistent liberalization and astute economic management has led to the removal of 95% of all price controls, low unemployment, a positive balance of payments position, a stable exchange rate, a shift of exports from former communist economic bloc markets to Western Europe, and relatively low foreign debt.
The formerly pegged currency was forced into a floating system as investors sold their Korunas faster than the government could buy them. Please help update this article to reflect recent events or newly available information. The top individual income tax rate has been raised to 23 percent, and the top corporate tax rate is 19 percent. White label accounts can distribute our data. Home | Country Rankings | Graph The Data | Heat MapExplore the Data | Downloads | FAQs| About The Index. For steel and metal businesses orders and sales have rebounded, and producers currently benefit from higher sales prices due to increased demand and shortages of steel and metals products. However, profitability remains subdued due to the still low interest rates. Import goods: machinery and transport equipment, raw materials and fuels, chemicals (2018) This necessitated the restructuring of existing banking and telecommunications facilities, as well as adjusting commercial laws and practices to fit Western standards. Most decrease of industrial output was in construction industry (-25% in 2009, -15,5% in 2013). Koruna obratem zpevnila pod 25 za euro, "Vic ne Milion ech ije pod hranic chudoby. The Czech Republic's gross domestic product advanced 1.5 percent on quarter in the three months ending September of 2021, following a 1.0 percent increase in the previous period and compared with a preliminary estimate of a 1.4 percent rise. This site is managed by the Directorate-General for Economic and Financial Affairs, Follow the European Commission on social media. API users can feed a custom application. Inflation as measured by HICP is forecast to average 13.9% over 2022 and 5.8% over 2023. Output is forecast to surpass its pre-pandemic level in the second quarter of 2023. Fiscal health and business freedom are strong, but government spending is excessive. Trading Economics welcomes candidates from around the world. The major services are research and development, ICT and software development, nanotechnology and life sciences. Czech Republic Country Report September 2021, Czech Republic: trade credit slashed during pandemic, Russia's Fortress strategy is not for free. The so-called Velvet Revolution ended Czechoslovakias Communist dictatorship in 1989, and the Czech Republic became independent from Slovakia in 1993. Central banks face a choice between supporting a wage-price spiral or inducing a recession. The overall tax burden equals 34.9 percent of total domestic income.
[38] The largest trading partner for both export and import is Germany, followed by other members of the EU. That's why the country wasn't affected by the shrunken money supply in the U.S. dollars. Unemployment: 2,3% (September 2018)[63], Industrial production growth rate: 3.5% (2016), Household income or consumption by percentage share: (2015), Exports: $136.1 billion The surge is mainly due to higher fuel prices and higher excise taxes introduced in 2020. Internal divisions on the board of the Czech National Bank are jeopardising a unified strategy for taming inflation. [61], The following table shows the main economic indicators in 19802017. Services: 60% (2016) GDP (nom. The positive GDP development was supported solely by the domestic demand, with increases in both household consumption (4.3 percent) and government spending (2.6 percent). In 2012, Czech government increased VAT. It also remains manageable in terms of government revenues.
[50] Dividends worth CZK 289 billion were paid to the foreign owners of Czech companies in 2016.[51]. The elections will likely result in another extended period to form a new government (the current administration was formed after nine months of negotiations). As of 2022, the Czech GDP per capita at purchasing power parity is $46,811 and $28,077 at nominal value.
Headline- and core inflation are forecast to converge in the first half of 2023. [34] The Czech Republic ranks 21st in the Index of Economic Freedom (ranked behind Chile),[35] 24th in the Global Innovation Index (ranked behind Australia),[36] 32nd in the Global Competitiveness Report,[37] 41st in the ease of doing business index and 25th in the Global Enabling Trade Report (ranked behind Canada). [34] The Czech healthcare system ranks 13th in the 2016 Euro health consumer index. The judiciarys independence is largely respected, although its complexity has led to slow delivery of judgments. The Czech Republic economy is highly integrated into international value chains, and at almost 70%, the export-to-GDP ratio is one of the highest in the EU.
Now completed,[citation needed] the program has made Czechs, who own shares of each of the Czech companies, one of the highest per-capita share owners in the world. Inflation: 0.7% (2016) East-central Europe unites to support Ukraine, War in Ukraine will weaken east European economies, Visegrad countries struggle to contain inflation, War in Ukraine breathes new life into NATO, for now, Czech central bank divided over approach to record inflation, Europe chart of the week: governments face policy challenges, Inflation in the Czech Republic surpasses 17% in June. Trade Freedom 79.2 Create a Graph using this measurement, Investment Freedom 70.0 Create a Graph using this measurement, Financial Freedom 80.0 Create a Graph using this measurement. Tier 1 capital ratio is high at 21.4%, and more than a quarter of banks assets are liquid. Direct access to our data from your apps using any programing language. GDP Growth: 2.6% (2016) The Czech Republics economic freedom score is 74.4, making its economy the 21st freest in the 2022 Index. Current Account balance: $2.216 billion (2018) Export partners: Germany 32.4%, Slovakia 8.4%, Poland 5.8%, UK 5.2%, France 5.2%, Italy 4.3%, Austria 4.2% (2016) Following a series of currency devaluations, the crown has remained stable in relation to the US dollar. Due to economic repercussions caused by the coronavirus pandemic, Czech Republic GDP contracted by 5.8% year-on-year in 2020.
The government established a restructuring agency in 1999 and launched a revitalization program to spur the sale of firms to foreign companies. Disagreements among the ruling parties could be a source of instability in the medium term. [60] As of 2019, the financing models and contractor selection for the planned reactors are being negotiated by the government. Current job openings: Download historical data for 20 million indicators using your browser. This followed a worldwide trend to divest from developing countries that year. Recent accession to the EU gives further impetus and direction to structural reform. From 2009 to 2012, Czech Republic suffered highest state budget deficits in history of independent Czech Republic. Over the remainder of 2022, economic growth is projected to stagnate as increases in the cost of finance and reduced real income continue to drag on economic activity. The Czech Republic economy was seen expanding by 0.7 percent quarter-over-quarter in the first three months of 2022, slowing slightly from a downwardly revised 0.8 percent advance in the previous period and beat market expectations of a 0.3 percent expansion, preliminary estimates showed. It is a member of the Organisation for Economic Co-operation and Development (OECD). As vaccination campaigns are underway, the world economy is recovering from the pandemic. In June, the manufacturing purchasing manager index climbed to an all-time high of 62.7, fuelled by new orders, in particular from abroad. The machinery sector is forecast to grow by more than 6% this year, due to the recovery of domestic industrial production and higher demand from abroad. By 1998, more than 80% of enterprises were in private hands. 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 Czech economy will therefore be subject to exceptionally high and broad-based inflation over 2022, and is set to experience second-round effects on for instance wages, which contribute to the height and persistence of inflation. The Czech Republic has an additional 83 country-specific nontariff barriers.
From the financial crisis of 20072010, Czech Republic is in stagnation or decreasing of GDP. The Czech industrial tradition dates back to the 19th century, when the Lands of the Bohemian Crown were the economic and industrial heartland of the Austrian Empire and later the Austrian side of Austria-Hungary. Please refer to the actual policy or the relevant product or services agreement for the governing terms. The Czech Republic has a highly diverse economy that ranks 7th in the 2019 Economic Complexity Index. Unstable governments will struggle to implement adequate policies amid increased political strife and social unrest. The credit portion of the Financial crisis of 20072010 did not affect the Czech Republic much, mostly due to its stable banking sector which has learned its lessons during a smaller crisis in the late 1990s and became much more cautious. Property rights are relatively well protected, and contracts are generally secure. However, due to an informal tolerance agreement, the government has enjoyed the principal backing of the pro-Russian Czech Communist Party. [42], The "Velvet Revolution" in 1989, offered a chance for profound and sustained political and economic reform. Zem ale zstv i vznamnm exportrem energie, Nov jadern blok v Dukovanech by ml stt maximln 200 miliard korun, v Drbov, Nejlep reference na stavbu novch reaktor v esku maj Korejci, tvrd Drbov, Nov jadern zdroje budou financovny dceinmi firmami skupiny EZ, rozhodla vlda, "Report for Selected Countries and Subjects", Unemployment rates, seasonally adjusted, July 2016, "CEE Basic Data - Key economic indicators and forecasts", IT and telecommunications in Central and Eastern Europe, OECD Economic Survey of the Czech Republic, Maldonado, Carlos Gustavo: Repblica checa, transicin del socialismo de Estado a la economa de mercado - En: economa de posguerra, blog de historia econmica global, Economy of the Czech Republic Annual Trends, World Bank Summary Trade Statistics Czech Republic, Organisation for Economic Co-operation and Development (OECD), Convention on the Organisation for Economic Co-operation and Development, https://en.wikipedia.org/w/index.php?title=Economy_of_the_Czech_Republic&oldid=1097209368, Short description is different from Wikidata, Wikipedia articles in need of updating from January 2022, All Wikipedia articles in need of updating, Articles with unsourced statements from December 2008, Articles with unsourced statements from January 2009, Articles with hatnote templates targeting a nonexistent page, Creative Commons Attribution-ShareAlike License 3.0. according to the Czech Statistical Office: Benacek, Vladimir: economics of alliances and (dis)integration, an alternative interpretation of transition illustrated on Czech economic history (June 2002) - 25 p. Horvath, Julius: the Czech currency crisis of 1997 - En: Dabrovski, Marek: currency crises in emerging markets - New York: Springer, 2003 - p.221-234, OECD: economic surveys, Czech republic, 1991-2018 (OECD iLibrary), Zidek, Libor: from central planning to the market, the transformation of the Czech economy 1989-2004 Budapest: CEU press, 2017, This page was last edited on 9 July 2022, at 10:18. Czech Investment Abroad: $43.09 billion (31 December 2016) The resilient banking sector offers a wide range of financial products. In response to the crisis, two austerity packages were introduced later in the spring (called vernacularly "The Packages"), which cut government spending by 2.5% of GDP. Czech metals output is expected to increase by 10% in 2021, after an 8% contraction last year. Public debt is expected to remain rather resilient against interest rate and exchange rate shocks. Key priorities included accelerating legislative convergence with EU norms, restructuring enterprises, and privatising banks and utilities. On a yearly basis, the economy expanded by 3.1 percent, above an earlier estimate of a 2.8 percent rise. Within the EU, it is the second most dependent country on Russian gas, and is facing a mass influx of refugees fleeing Ukraine. Today, this heritage is both an asset and a liability. The voucher holders could then invest their vouchers, increasing the capital base of the chosen company, and creating a nation of citizen share-holders. The risk of corruption, patronage, and nepotism in the public procurement sector and public administration is regarded as especially problematic.
In accordance with Stalin's development policy of planned interdependence, all the economies of the socialist countries were tightly linked to that of the Soviet Union.
The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation that maintains a high-income welfare state and the European social model. See how Czech Republic compares to another country using any of the measures in the Index.
While ANO 2011 is expected to remain the strongest party in parliament after the elections, its ability to form a coalition government that holds a majority in parliament is far from certain. 2022 Data - 2023 Forecast - 1995-2021 Historical, Czech Inflation Rate Hits Highest Level Since 1993, Czech Jobless Rate Falls Further to Over 2-Year Low, Czech Retail Sales Fall More than Expected in May, Czech Construction Output Growth at 7-Month Low, Czech May Industrial Output Unexpectedly Rebounds, Czech Republic Factory Activity Unexpectedly Contracts, Czech Republic Consumer Morale at Over 10-Year Low, Australia Services PMI Eases to 6-Month Low, Australia Manufacturing PMI Falls in July, UK Consumer Confidence Stays at Record Low. GDP per capita (nom. [59] This 2015-approved energy strategy expects construction of an additional nuclear reactor in the Temeln Nuclear Power Station and another one in the Dukovany Nuclear Power Station with the possibility of further expansion to two reactors in each power station. Russias invasion has further divided the world into opposing camps, but splits within NATO will emerge again.
[30] The Czech Republic participates in the European Single Market as a member of the European Union, and is therefore a part of the economy of the European Union. However, since Q2 of 2021 the Czech economic rebound is gaining momentum, supported domestically by declining coronavirus cases, accelerated vaccination rollout (by early September about 54% of the population have been fully vaccinated), and the lifting of restrictions. The investment framework generally facilitates new business activities. [citation needed]. However, as a large exporter, the economy was sensitive to the decrease of the demand in Germany and other trading partners. As inflation has increased above its upper target rate of 2%, the Central Bank has decided to focus on inflation targeting instead of further supporting the business cycle (in 2020 it had cut rates by 200 basis points).
The European Union funded 59 percent of the Czech Republics subsidies for the 2014 to 2020 programming period. Inflation is foreseen to decline afterwards, when the impact of the loss of real income and the effectiveness of tightened monetary policy are expected to prevail. Since then, consistent liberalization and astute economic management has led to the removal of 95% of all price controls, low unemployment, a positive balance of payments position, a stable exchange rate, a shift of exports from former communist economic bloc markets to Western Europe, and relatively low foreign debt.
The formerly pegged currency was forced into a floating system as investors sold their Korunas faster than the government could buy them. Please help update this article to reflect recent events or newly available information. The top individual income tax rate has been raised to 23 percent, and the top corporate tax rate is 19 percent. White label accounts can distribute our data. Home | Country Rankings | Graph The Data | Heat MapExplore the Data | Downloads | FAQs| About The Index. For steel and metal businesses orders and sales have rebounded, and producers currently benefit from higher sales prices due to increased demand and shortages of steel and metals products. However, profitability remains subdued due to the still low interest rates. Import goods: machinery and transport equipment, raw materials and fuels, chemicals (2018) This necessitated the restructuring of existing banking and telecommunications facilities, as well as adjusting commercial laws and practices to fit Western standards. Most decrease of industrial output was in construction industry (-25% in 2009, -15,5% in 2013). Koruna obratem zpevnila pod 25 za euro, "Vic ne Milion ech ije pod hranic chudoby. The Czech Republic's gross domestic product advanced 1.5 percent on quarter in the three months ending September of 2021, following a 1.0 percent increase in the previous period and compared with a preliminary estimate of a 1.4 percent rise. This site is managed by the Directorate-General for Economic and Financial Affairs, Follow the European Commission on social media. API users can feed a custom application. Inflation as measured by HICP is forecast to average 13.9% over 2022 and 5.8% over 2023. Output is forecast to surpass its pre-pandemic level in the second quarter of 2023. Fiscal health and business freedom are strong, but government spending is excessive. Trading Economics welcomes candidates from around the world. The major services are research and development, ICT and software development, nanotechnology and life sciences. Czech Republic Country Report September 2021, Czech Republic: trade credit slashed during pandemic, Russia's Fortress strategy is not for free. The so-called Velvet Revolution ended Czechoslovakias Communist dictatorship in 1989, and the Czech Republic became independent from Slovakia in 1993. Central banks face a choice between supporting a wage-price spiral or inducing a recession. The overall tax burden equals 34.9 percent of total domestic income.
[38] The largest trading partner for both export and import is Germany, followed by other members of the EU. That's why the country wasn't affected by the shrunken money supply in the U.S. dollars. Unemployment: 2,3% (September 2018)[63], Industrial production growth rate: 3.5% (2016), Household income or consumption by percentage share: (2015), Exports: $136.1 billion The surge is mainly due to higher fuel prices and higher excise taxes introduced in 2020. Internal divisions on the board of the Czech National Bank are jeopardising a unified strategy for taming inflation. [61], The following table shows the main economic indicators in 19802017. Services: 60% (2016) GDP (nom. The positive GDP development was supported solely by the domestic demand, with increases in both household consumption (4.3 percent) and government spending (2.6 percent). In 2012, Czech government increased VAT. It also remains manageable in terms of government revenues.