Czech Republic Overview

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

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Capital City:: Prague

The GDP growth rate was correct in 2005 : it was 4% in 2004 and 4.1% in 2005. The IMF forecasts a 3.9% growth in 2006. Growth is driven by exports dynamism as well as high investments level. Czech Republic is one of Central and Eastern Europe Countries, CEEC's most developed countries. Inflation is under control (2% in 2005) but public funds are phasing out and budget deficit is widening.

Agriculture has known a continuous crisis in the 90s and is currently quite subsidised. The agricultural sector provides 3.5% of the GDP and employs 4% of the active population. The main crops are wheat and barley. The manufacturing industry adds up to 40% of the GDP and is mainly privatised. One of the country's major activity sector is the car industry with Skoda (Volkswagen company) and with foreign investors such as Toyota and PSA which will start a production together in the same factory in Czech republic as from June 2005. However, this sector is reaching saturation point.
Textile is a dynamic sector. Tourism is in full boom, especially thanks to Prague's high attractivity.

The Czech Republic became a member of the European Union on the 1st of May 2004. The country's top three export partners are Germany, Slovakia and Austria. Its top three import partners are Germany, Italy and Slovakia. The Czech Republic mainly imports machinery, capital goods, oil, gas and vehicles.