Diplomatic representation from the US:
chief of mission: Ambassador William J. CABANISS
embassy: Trziste 15, 11801 Prague 1
mailing address: use embassy 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)

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
2000-04 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 interest rates drop and the availability of credit cards and
mortgages increases. Current account deficits of around 5% of GDP
are beginning to decline as demand for Czech products in the
European Union increases. Inflation is under control. Recent
accession to the EU gives further impetus and direction to
structural reform. In early 2004 the government passed increases in
the Value Added Tax (VAT) and tightened eligibility for social
benefits with the intention to bring the public finance gap down to
4% of GDP by 2006, but more difficult pension and healthcare reforms
will have to wait until after the next elections. Privatization of
the state-owned telecommunications firm Cesky Telecom is scheduled
to take place in 2005. Intensified restructuring among large
enterprises, improvements in the financial sector, and effective use
of available EU funds should strengthen output growth.

GDP (purchasing power parity):
$172.2 billion (2004 est.)

GDP - real growth rate:
3.7% (2004 est.)

GDP - per capita:
purchasing power parity - $16,800 (2004 est.)

GDP - composition by sector:
agriculture: 3.4%
industry: 39.3%
services: 57.3% (2004 est.)

Labor force:
5.25 million (2004 est.)

Labor force - by occupation:
agriculture 4%, industry 38%, services 58% (2002 est.)

Unemployment rate:
10.6% (2004 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:
25.4 (1996)

Inflation rate (consumer prices):
3.2% (2004 est.)

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