mbassy street address

telephone: [420] (2) 5753-0663

FAX: [420] (2) 5753-0583

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

Czech Republic Economy

Economy - overview: Basically one of the most stable and prosperous
of the post-Communist states, the Czech Republic has been recovering
from recession since mid-1999. The economy grew about 2.5% in 2000
and should achieve somewhat higher growth in 2001. Growth is led by
exports to the EU, especially Germany, and foreign investment, while
domestic demand is reviving. Uncomfortably high fiscal and current
account deficits could be future problems. Unemployment is down to
8.7% as job creation continues in the rebounding economy; inflation
is up to 3.8% but still moderate. The EU put the Czech Republic just
behind Poland and Hungary in preparations for accession, which will
give further impetus and direction to structural reform. Moves to
complete banking, telecommunications and energy privatization will
add to foreign investment, while intensified restructuring among
large enterprises and banks and improvements in the financial sector
should strengthen output growth.

GDP: purchasing power parity - $132.4 billion (2000 est.)

GDP - real growth rate: 2.5% (2000 est.)

GDP - per capita: purchasing power parity - $12,900 (2000 est.)

GDP - composition by sector: agriculture: 3.7%

industry: 41.8%

services: 54.5% (1999)

Population below poverty line: NA%

Household income or consumption by percentage share: lowest 10%:
4.3%

highest 10%: 22.4% (1996)

Inflation rate (consumer prices): 3.8% (2000 est.)

Labor force: 5.203 million (1999 est.)

Labor force - by occupation: agriculture 5%, industry 40%, services
55% (2000 est.)

Unemployment rate: 8.7% (2000 est.)

Budget: revenues: $16.7 billion

expenditures: $18 billion, including capital expenditures of $NA
(2001 est.)

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

Industrial production growth rate: 7.6% (2000)

Electricity - production: 67.642 billion kWh (2000)

Electricity - production by source: fossil fuel: 77.8%

hydro: 3.43%

nuclear: 18.77%

other: 0% (2000)

Electricity - consumption: 52.898 billion kWh (2000)

Electricity - exports: 18.744 billion kWh (2000)

Electricity - imports: 8.735 bi