Economy - overview Western observers view the Czech Republic as one of the most politicallyand economically stable post-Communist states. Its key macroeconomic indicatorsare, in the aggregate, the best in the region, and public opinion polls showstrong support for reform. The country emerged from recession in 1994 with2.6% growth and reached about 5% growth in both 1995 and 1996 while keepinga balanced budget and reorienting exports to the EU. Inflation and unemploymentof 8.7% and 3.3% respectively in 1996 are among the lowest in the region.Prague's mass privatization program, including its innovative distributionof ownership shares to Czech citizens via "coupon vouchers," has made themost rapid progress in Eastern Europe. About 80% of the economy is in privatehands or is partially privatized. The Czech Republic appears to be the EastEuropean frontrunner in economic integration with the West; for example, in1996 it began to strengthen its bankruptcy law and to improve the transparencyof stock market operations. It was the first post-Communist member of theOECD and is expected to be in the next group of new EU members. Its solideconomic performance has led Standard and Poor's to upgrade the country'ssovereign credit rating to "A" and has attracted over $6.7 billion in directforeign investment to Czech industry between 1990 and September 1996 - onequarter from the US. Prague's biggest macroeconomic concerns now are mountingtrade and current account deficits. In addition, the Czech economy still facestransition problems. The government continues to exert too much direct andindirect influence on the privatized economy, and the management of privatizedfirms sometimes is ineffective. Insufficient regulation and lack of publicinformation in the capital markets and the banking system, combined with ashortage of experienced financial analysts, limit the ability to distribute new credit efficiently. The judicial system also has trouble speedily processingbankruptcy cases. Prague has promised to overhaul its bankruptcy law and improvestock market and bank operations, but it will take years to ensure compliance.Prague forecasts a balanced budget, 4.5% GDP growth, 3.3% unemployment and7.5% to 8% inflation for 1997.

GDP purchasing power parity - $114.3 billion (1996 est.)

GDP - real growth rate 5% (1996 est.)

GDP - per capita purchasing power parity - $11,100 (1996 est.)

GDP - composition by sector
agriculture: 4%
industry: 43%
services : 53% (1996 est.)

Inflation rate - consumer price index 8.7% (1996 est.)

Labor force
total: 5.107 million (1996)
by occupation: industry 33.1%, agriculture 6.9%, construction 9.1%, transport and communications7.2%, services 43.7% (1994)

Unemployment rate 3.3% (1996 est.)

Budget
revenues: $18.4 billion
expenditures: $18.4 billion, including capital expenditures of $NA (1996 est.)

Industries fuels, ferrous metallurgy, machinery and equipment, coal, motor vehicles,glass, armaments

Industrial production growth rate 6.4% (1996 est.)

Electricity - capacity 13.85 million kW (1994)

Electricity - production 55.38 billion kWh (1994)

Electricity - consumption per capita 4,712 kWh (1995 est.)

Agriculture - products grains, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry; forestproducts

Exports
total value: $21.9 billion (f.o.b., 1996 est.)
commodities: manufactured goods 32.4%, machinery and transport equipment 26.3%, chemicals10.4%, raw materials and fuel 11.3% (1995)
partners : EU 55.1%, Eastern Europe, excluding Slovakia, and CIS countries 16.9%,Slovakia 16.2%, developing countries 6.6%, EFTA 1.8% (1995)

Imports
total value: $27.8 billion (f.o.b., 1996 est.)
commodities: machinery and transport equipment 35.6%, manufactured goods 17.9%, chemicals13.2%, raw materials and fuels 14.4% (1994)
partners : EU 56.4%, Eastern Europe, excluding Slovakia, and CIS countries 15.7%,Slovakia 13.1%, developing countries 6.0%, EFTA 2.5% (1995)

Debt - external $17.1 billion (1996 est.)

Economic aid
recipient: ODA, $27 million (1993)

Currency 1 koruna (Kc) = 100 haleru

Exchange rates koruny (Kcs) per US$1 - 27.516 (January 1997), 27.145 (1996), 26.541(1995), 28.785 (1994), 29.153 (1993), 28.26 (1992)
note: values before 1993 reflect Czechoslovak exchange rates

Fiscal year calendar year

NOTE: The information regarding Czech Republic on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Czech Republic Economy 1997 information contained here. All suggestions for corrections of any errors about Czech Republic Economy 1997 should be addressed to the CIA.