Czech Republic has a stable economy, relying primarily on expoorts.  The country's main exports are machinery, transport equipment, fuel and chemicals.

(Source: oecd.org)

Gross domestic product (GDP)

From 2001 to 2008, the country’s GDP experienced a steady rise. It registered a marginal decline from CZK 3,689.9 billion in 2008 to CZK 3,625.9 billion in 2009. From 2010 to 2013, the country’s GDP is projected to recover gradually and increase at a slow pace.

(Sources: National Statistics, :Ministry of Finance (2010-13))

p= projected                                               

GDP growth rate

GDP growth rate has had a consistent decline from 4.1% n i2006 to -3.9% in 2009, and is further projected to reach 2.2% by 2012.

(Source: Ministry of Finance: External Relations PDF, pg 4)

Gross national income (GNI)

Czech Republic’s GNI registered an overall increase from 2005 to 2008. It fell marginally from CZK 3,523 billion in 2008 to CZK 3,411 billion in 2009. It is projected to reach CZK 3,990 billion by 2014. 

(Source: Ministry of Finance: Economic Output PDF pg 3)

e-estimate

(Source: Ministry of Finance)

In 2010, the country’s GNI per capita (PPP) was USD 22,678.

(Source: undp.org, page: 4)

Inflation rate

Inflation in the Czech Republic has witnessed fluctuations in the past decade. From 2005 to 2008, the inflation rate increased from 1.9% to 6.3%, but proceeded to sharply declined to 1% in 2009. However, in 2010 and 2011(Feb) inflation again increased marginally from 1% to 1.7%.

(Source: National Statistics)

Foreign direct investments (FDI)

Czech Republic’s overall FDI inflow declined from 2005 to 2008. In 2012, FDI is projected to reach CZK 75 billion.

              

(Source: National Bank : Inflation Report PDFPg 80)

Tax rate

Czech Republic’s individual income tax rate is 15%, and its corporate income tax rate is 19%. The VAT (Value-Added Tax) levied across the country is 20%. The VAT on basic commodities was increased in 2010 adding to the rising prices of groceries, energy and medicine.

(Source: worldwide-tax, Socialwatch)

Banking sector assets

Czech Republic’s total bank assets have been increasing at a growth rate of 3.76%, from CZK 3,750,649 million in 2007 to CZK 4,189,895 million in 2010 (till Q3).

(Source: National Bank)

Consumer price index (CPI)

Czech Republic’s CPI shows a steady rise from 100 in 2005 to 116.3 in 2011 (Jan).

(Source: National Statistics)

Interest Rates (% per annum)

(Source: National Bank: Extract)

Interest rates on deposits increased from 2005 to 2007. From 2008 to 2010, these rates recorded a decline. Rates on deposits from households increased from 0.87% in 2005 to 1.46% in 2008. The rate fell to 1.08% at the end of 2010. Lending rates show a steady rise from 10.94% in 2005 to 14.68% in 2010.

Official exchange rate

A firm decline in the koruna against the US dollar was noted from 2001 to 2008. After 2008, it was projected to appreciate predominantly due to the fall of the dollar in global markets.

(Source: National Bank : Inflation Report PDFPg 80)

Currency in circulation

From 2006 to 2007, the country’s money supply dropped marginally. The demand for liquid money slowed after the recession in 2008. 

(Source: National Statistics (2006), National Statistics (2007), National Statistics (2008), National Statistics (2009), National Statistics(2010))

Government finances

Sovereign debt dynamics

Fiscal balance (CZK million)

(Source: Ministry of Finance)

Czech Government’s fiscal balance improved from a deficit of CZK 44,030 million in 2009 to a deficit of CZK 15,660 million in 2010. Additionally, there was substantial growth in revenue and grants collected by the Government in 2010.

 Current account balance (CAB)

The nation’s current account balance shows a deficit from 2005 to 2009. The CAB is projected to rise from a deficit of CZK 29.9 billion in 2009 to a surplus of CZK 45.0 billion in 2011.

(Source: National Bank : Inflation Report PDFPg 80)

Balance of payments (BOP)

Czech Republic’s balance of payments from 2005 to 2010 shows a consistent deficit. From 2006 to 2009 the balance declined from a deficit of CZK 2,074.40 million in 2006 to CZK 60,646.50 million in 2009.

(Source: National Bank 4)

The MoLSA (Ministry of Labour and Social Affairs) is responsible for the country’s labour reforms and policies, social security, occupational safety, social benefits, equal opportunities and other labour related issues. The CSSA (Czech Social Security Administration), a part of MoLSA, is in charge of pensions, sickness benefits, social support and compensatory agreements of the country’s labour force.  

 The minimum wage in the country is CZK 8,000. The real and nominal wages declined after 2008 due to the effect of recession and growing inflation.

           (Sources: Ministry of Labour and Social Affairs, National Statistics, fedee)

 Unemployment

From 2004 to 2008, the country’s unemployment rate declined steadily.  However, from 2008, an increase in unemployment was registered, reaching 6.6% in 2009.  Unemployment is further projected to reach 7% by 2012.

(Source: Ministry of Finance)

Labour force participation rate

From 2003 to 2009, Czech Republic’s labour force participation rate witnessed fluctuations from a low of 69.7% to a high of 70.4%. The participation is projected to increase to 71.3% by 2012.

 p=projected

 (Source: Ministry of Finance)

Level of unionisation

        The predominant confederation of trade unions in the country is the CMKOS Congress. The next largest group is the ASO (Association of Independent Trade Unions), a branch-out of agricultural workers from the CMKOS.

        The CMKOS claims to be independent of political influence, however, its chairman is the senator of ČSSD, a social democratic party.

        The ASO was established to reduce agricultural subsidies. It also includes other smaller unions, such as a railway workers' union and doctors' union.

There are a number of other unions for various sectors of the economy like media, construction and transport.  

As of 2011, there are 34 trade unions with 611,000 members.

        (Sources: European Trade Union Confederation, fedee, Eurofound, Worker-participation)   

Czech Republic is a parliamentary representative democracy. It follows a multi-party political system. The system was set up after the independence of the Czech Republic in 1993 when civil rights, judiciary powers and  the executive and legislative branches of authority were established.

The parliament is the country’s central legislative authority. It is comprised of the Chamber of Deputies and the Senate. The President is the head of state,and appointed for a five year term.

The supreme authority of executive power is the government. It comprises of the Prime Minister, the Deputy Prime Minister and other ministers. Vaclav Klaus is the President and Petr Necas is the Prime Minister of the country. 

The last elections took place in 2002, with Czech Social Democratic Party (CSSD) holding the majority. Following these elections a coalition government was set up between the Christian Democratic Union-Czechoslovak People´s Party (KDU-CSL) and the Union of Freedom-Democratic Union (US).

Other major operating parties include the Civic Democratic Party (ODS) and The Communist Party.

        (Sources: Ministry of Foreign Affairs, Czech Republic Embassy, Czech Government)

           Regulatory environment

(Source: Heritage.org)

Czech Republic has the world’s 28^th freest economy on the 2011 Economic Freedom Index with a score of 70.4. It scored 0.6 points higher than the previous year, making it 14^th out of 43 EU nations.

Corruption

The Corruption Perceptions Index (CPI) is a survey that measures the perceived level of corruption across countries worldwide. Czech Republic is ranked 53^rd out of 178 countries in 2010 with a score of 4.6, indicating that it is perceived as a moderately corrupt country.

(Source: Transparency.org)

Freedom of information

In 2010, Czech Republic is ranked 24^th on the Press Freedom Index with a score of 7.5. The index contains countries with scores ranging from zero, i.e. country with highest freedom, to 105, marking a country with minimal freedom. This relfects Czech Republic's impositions of certain restrictions on its media.

(Source: rsf.org)

Judicial system

As a part of the EU, the Czech Republic follows its democratic and legal norms.  It also follows the principles of human rights and freedom set out in Article 49 of the Treaty of the European Union. However, the European Commission critcized the country for its current state of judiciary.

In the hierarchy of the Czech judicial system the Supreme Court is the highest authority, followed by the High Courts, then the District and County Courts, and finally the Municipal Courts. All of whom are managed by the Ministry of Justice.

(Sources: Ministry of Justice, European Policy Forum)

Population

(Source: National Statistics)

In the last decade, the population of Czech Republic increased at a Compound Annual Growth Rate (CAGR) of 0.25%.

(Source: National Statistics)

In 2010, the population of below 14 year olds contributed 14.02% to the total population. 

Also in 2010, the life expectancy of men was 74.4, and for women it was 80.6 years.

(Source: World Bank)

   Birth rate

(Source: National Statistics : Table 5, ‘Population’ Excel Sheet)

Czech Republic’s birth rate witnessed a rise from 2006 to 2008.  This was followed by a marginal declined from 11.3 per thousand in 2009 to 11.1 per thousand in 2010.

   Mortality rate    

(   (Source: National Statistics : Table 5, ‘Population’ Excel Sheet, World Bank)

The country’s infant mortality rate was on a steady decline from 3.3 (per '000) in 2006 to 2.8 (per '000) in 2008. However, from 2008 to 2010 the rate recorded a marginal increase to 3.1 (per '000).

Gender ratio at birth

The gender ratio was recorded at 105.7 male births (per 100 female births) in 2010.

(Source: undp, pg 180)

Dependency ratio

In 2010, 41.5% of population was recorded as dependent.

(Source: undp, pg 180)

Urbanisation     

In 2010, 75.2% of the population was classified as urban.

(Source: undp, pg 180)

Human development index (HDI)

      The country stood 28^th on the United Nation’s Human Development Index of 2010. Thus, it falls into the category of ‘Very High Human Development.’ The HDI integrates a country’s life expectancy, education and income. This signifies the overall social and economic development of a nation.

(Source: undp, pg 138) 

Education

Czech Republic has a democratic and equal opportunity education system. Nine years of school education is compulsory.  There have been many progressive reforms in the system since 1990.  These include ending state control over the system, introducing vocational education, changing the funding structure and creating alternatives to college and university education.

In 1995 the Amendment Act introduced changes into the education system. It made nine years of schooling compulsory, set new rules of extra-curricular activities, launched a higher-professional level of education and ended state-financed programmes.

Additonally, the 2001 National Programme for the Development Education was launched to establish the basic guidelines for the national education system. This programme considered education policies, social changes, administrative and financial requirements as well as governance principles.

 (Sources:Centre for Higher Education Studies, Czech Republic Embassy, European Commission, ibe.unesco)

Health

The overall healthcare system of the Czech Republic is not as advanced as that of developed EU nations. The system's infrastructure and HTA (health technology assessment) procedures are not yet developed.

The Czech Republic has an SHI (Social Health Insurance) system. It involves compulsory membership in one of the ten health insurance funds in the country. The Ministry of Health prepares the policies and legislative procedures regulating the health care system. The ministry also has authority over the SUKL (State Institute for Drug Control) and the public health network.  Finally, the SUKL regulates reimbursement schemes and prices of medicines.

Most primary and secondary care facilities are private. Compared to Western Europe, Czech Republic spends relatively less on healthcare. 

The healthcare system’s services are administered by regional authorities to ensure accessibility to the grass-root level. Entitled residents have freedom of choice in regard to their health care provider.

The 2006 Act on Social Services created co-ordination between long term social care and long term health care systems. However, the system faces challenges like ensuring quality maintenance, equal accessibility to all citizens, integration of the rationing benefits distribution system and transparency of the structure of governing and stake-holding bodies.   

(Source: National Reference Centre, European Observatory)

Transport

The ‘Ministry of Transport’ is the governing authority of transport in the Czech Republic, managing Road Transport, Road Traffic Safety (BESIP), Railway Transport, Air Transport, Water Transport, Public and Combined Transportation, the State Fund of Transport Infrastructure, Transport Policy, International Relations and Environmental Department, Crisis Management Issues, and the Information Systems Department.

The Department of Public Transport represents the ministry before the judiciary, providing regulatory, conceptual and legislative guidelines for road and rail passenger transport. Additionally, the department integrates transport systems and manages national information system on schedule. Finally, the department functions in co-ordination with local authorities to implement transport facilities across the nation.

Roads

There are two basic modes of mass public transit: buses and metro. The bus companies include Autobus and Trolleybus.

There are seven highways and one rail network stretching across the nation. Prague, the capital of the country, has a well-developed public transport infrastructure consisting of buses, a metro and trams.

Airways

Czech Airlines (CSA) is a state-owned airline connecting the nation to major global destinations. The ANS (Airline Navigation Service) maintains air-traffic safety, international aviation standards and legal regulations. There are 18 paved airports in the country. The major airports are Prague-Ruzyně, Brno-Turany, Ostrava-Mosnov and Karlovy Vary. The average length of runway is 2500 feet.

Waterways

The Vltava and Elbe rivers serve as the most important waterways.

(Sources: Ministry of Transport, National Statistics, aircraft-charter-world,Sky Team, Businessinfo.cz)

Telecommunications networks

‘The Regulatory Authority’ of the country governs the telecommunications sector in regards to domestic tarrifs and interconnection charges. Leaving, the Czech Telecommunication Office responsible for all other matters.

Cesky Telecom is one of the providers of mobile, fixed-line and wireless communication network services. Telefonica O2, Vodafone and T-Mobile are the other large service providers for mobile users. Since 2005, fixed-line numbers declined, as people preferenced mobile and internet communication. 65.5% of the population use the internet regularly. The country has one of the highest numbers of WiFi hotspots in EU with over 1670 hotspots in 2007.

Recent developments in the telecom industry include the introduction of 3G and VoIP services, along with access to broadband facilities in remote areas.

(Sources: oecd.org, internetworldstats, o2.cz , ctu.cz, volny)

In 2010, there were 2, 405,500 fixed telephone lines in Poland.

(Source: World Bank)

In 2010, the number of mobile cellular subscription users was recorded at 14,392,964.

(Source: World Bank)