Czechia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Czechia - In Short.

Overview of Czechia

At the close of World War I, the Czechs and Slovaks of the former Austro-Hungarian Empire merged to form Czechoslovakia, a parliamentarian democracy. During the interwar years, having rejected a federal system, the new country’s predominantly Czech leaders were frequently preoccupied with meeting the increasingly strident demands of other ethnic minorities within the republic, most notably the Slovaks, the Sudeten Germans, and the Ruthenians (Ukrainians). On the eve of World War II, Nazi Germany occupied the territory that today comprises Czechia, and Slovakia became an independent state allied with Germany. After the war, a reunited but truncated Czechoslovakia (less Ruthenia) fell within the Soviet sphere of influence when the pro-Soviet Communist party staged a coup in February 1948. In 1968, an invasion by fellow Warsaw Pact troops ended the efforts of the country’s leaders to liberalize communist rule and create “socialism with a human face,” ushering in a period of repression known as “normalization.” The peaceful “Velvet Revolution” swept the Communist Party from power at the end of 1989 and inaugurated a return to democratic rule and a market economy. On 1 January 1993, the country underwent a nonviolent “velvet divorce” into its two national components, the Czech Republic and Slovakia. The Czech Republic joined NATO in 1999 and the European Union in 2004. The country formally added the short-form name Czechia in 2016, while also continuing to use the full form name, the Czech Republic.
Value
Country Full Name
Czechia
Country Code
CZE
Region
Europe & Central Asia
Income Group
High income
Currency Unit
GDP
2.45E+11
Population
10697858
Land Area
77200
Net National Income Per Capita
17147.75421
GDP per Capita (PPP)
41608.02535

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Czechia - Economic

Economy of Czechia

Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank – CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013. The CNB hiked rates in August and November 2017 – the first rate changes in nine years – to address rising inflationary pressures brought by strong economic growth and a tight labor market.Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country’s low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

Unemployment Rate

Inflation Rate

Czechia - GDP Composition

GDP Composiiton & Value Added of Czechia

Last Updated: Jan, 2021, Updated For 2020.

Czechia - GDP, Value Added

Demographics of Czechia

a fairly even distribution throughout most of the country, but the northern and eastern regions tend to have larger urban concentrations
Geographic Location

Central Europe, between Germany, Poland, Slovakia, and Austria

Races

Czech 64.3%, Moravian 5%, Slovak 1.4%, other 1.8%, unspecified 27.5% (2011 est.)

Languages

Czech (official) 95.4%, Slovak 1.6%, other 3% (2011 est.)major-language

Religion

Roman Catholic 10.4%, Protestant (includes Czech Brethren and Hussite) 1.1%, other and unspecified 54%, none 34.5% (2011 est.)

Dependency & Expectancy of Czechia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Czechia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

Australia Group, BIS, BSEC (observer), CD, CE, CEI, CERN, EAPC, EBRD, ECB, EIB, ESA, EU, FAO, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MONUSCO, NATO, NEA, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, PCA, Schengen Convention, SELEC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO, ZC

Import of Czechia

Export of Czechia

Import Destination

Export Destination