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equal horizontal bands of white (top) and red with a blue isosceles triangle based on the hoist side note: identical to the flag of the former Czechoslovakia

      Economy

       Czech Republic

      Economy - overview:

      The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000–07 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as the availability of credit cards and mortgages increases. The current account deficit has declined to around 3.3% of GDP as demand for automotive and other products from the Czech Republic remains strong in the European Union. Rising inflation from higher food and energy prices are a risk to balanced economic growth. Significant increases in social spending in the run-up to June 2006 elections prevented, the government from meeting its goal of reducing its budget deficit to 3% of GDP in 2007. Negotiations on pension and additional healthcare reforms are continuing without clear prospects for agreement and implementation. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth. The pro-business Civic Democratic Party-led government approved reforms in 2007 designed to cut spending on some social welfare benefits and reform the tax system with the aim of eventually reducing the budget deficit to 2.3% of GDP by 2010. Parliamentary approval for any additional reforms could prove difficult, however, because of the parliament's even split. The government withdrew a 2010 target date for euro adoption and instead aims to meet the eurozone criteria around 2012.

      GDP (purchasing power parity):

      $251 billion (2007 est.)

      GDP (official exchange rate):

      $175.3 billion (2007 est.)

      GDP - real growth rate:

      6.6% (2007 est.)

      GDP - per capita (PPP):

      $24,500 (2007 est.)

      GDP - composition by sector:

      agriculture: 2.7% industry: 38.7% services: 58.6% (2007 est.)

      Labor force:

      5.36 million (2007 est.)

      Labor force - by occupation:

      agriculture: 4.1% industry: 37.6% services: 58.3% (2003)

      Unemployment rate:

      6.6% (2007 est.)

      Population below poverty line:

      NA%

      Household income or consumption by percentage share:

      lowest 10%: 4.3% highest 10%: 22.4% (1996)

      Distribution of family income - Gini index:

      26 (2005)

      Investment (gross fixed):

      24.1% of GDP (2007 est.)

      Budget:

      revenues: $72.1 billion expenditures: $74.98 billion (2007 est.)

      Fiscal year:

      calendar year

      Public debt:

      26% of GDP (2007 est.)

      Inflation rate (consumer prices):

      2.9% (2007 est.)

      Central bank discount rate:

      3.5% (31 December 2007)

      Commercial bank prime lending rate:

      5.79% (31 December 2007)

      Stock of money:

      $84.43 billion (31 December 2007)

      Stock of quasi money:

      $58.77 billion (31 December 2007)

      Stock of domestic credit:

      $103.9 billion (31 December 2007)

      Agriculture - products:

      wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

      Industries:

      metallurgy, machinery and equipment, motor vehicles, glass, armaments

      Industrial production growth rate:

      9.8% (2007 est.)

      Electricity - production:

      82.88 billion kWh (2007 est.)

      Electricity - consumption:

      61.52 billion kWh (2006 est.)

      Electricity - exports:

      26.36 billion kWh (2007 est.)

      Electricity - imports:

      10.2 billion kWh (2007 est.)

      Electricity - production by source:

      fossil fuel: 76.1% hydro: 2.9% nuclear: 20% other: 1% (2001)

      Oil - production:

      13,530 bbl/day (2007 est.)

      Oil - consumption:

      207,400 bbl/day (2007 est.)

      Oil - exports:

      27,360 bbl/day (2005)

      Oil - imports:

      224,600 bbl/day (2005)

      Oil - proved reserves:

      15 million bbl (1 January 2008 est.)

      Natural gas - production:

      172 million cu m (2007 est.)

      Natural gas - consumption:

      8.622 billion cu m (2007 est.)

      Natural gas - exports:

      402 million cu m (2007 est.)

      Natural gas - imports:

      8.628 billion cu m (2007 est.)

      Natural gas - proved reserves:

      3.964 billion cu m (1 January 2008 est.)

      Current account balance:

      -$4.534 billion (2007 est.)

      Exports:

      $122.3 billion f.o.b. (2007 est.)

      Exports - commodities:

      machinery and transport equipment 52%, raw materials and fuel 9%, chemicals 5% (2003)

      Exports - partners:

      Germany 30.7%, Slovakia 8.7%, Poland 5.9%, France 5.4%, UK 5.1%,

       Italy 4.9%, Austria 4.6% (2007)

      Imports:

      $116.6 billion f.o.b. (2007 est.)

      Imports - commodities:

      machinery and transport equipment 46%, raw materials and fuels 15%, chemicals 10% (2003)

      Imports - partners:

      Germany 31.8%, Netherlands 6.7%, Slovakia 6.4%, Poland 6.3%, Austria 5.1%, China 5.1%, Russia 4.5%, Italy 4.4%, France 4.1% (2007)

      Economic aid - recipient:

      $278.7 million in available EU structural adjustment and cohesion funds (2004)

      Reserves of foreign exchange and gold:

      $34.59 billion (31 December 2007 est.)

      Debt - external:

      $74.7 billion (31 December 2007)

      Stock

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