om Street NW, Washington, DC 20008
telephone: [1] (202) 274-9101, 9102
FAX: [1] (202) 966-8540
consulate(s) general: Los Angeles

Diplomatic representation from the US:
chief of mission: Ambassador Jenonne R. WALKER
embassy: Trziste 15, 11801 Prague 1
mailing address: Unit 28129, APO AE 09114; State pouch: American
Embassy Prague, Washington, DC 20521-5630
telephone: [420] (2) 5732-0663, 5731-3814
FAX: [420] (2) 5732-0584

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

@Czech Republic:Economy

Economy-overview: Political and financial crises in 1997 shattered the
Czech Republic's image as one of the most stable and prosperous of
post-Communist states. Delays in enterprise restructuring and failure
to develop a well-functioning capital market played major roles in
Czech economic troubles, which culminated in a currency crisis in May.
The currency was forced out of its fluctuation band as investors
worried that the current account deficit, which reached about 8% of
GDP in 1996, would become unsustainable. After expending $3 billion in
vain to support the currency, the central bank let it float. The
growing current account imbalance reflected a surge in domestic demand
and poor export performance, as wage increases outpaced productivity.
The government was forced to introduce two austerity packages later in
the spring which cut government spending by 2.5% of GDP. A tough 1998
budget continues the painful medicine. These problems were compounded
in the summer of 1997 by unprecedented flooding which inundated much
of the eastern part of the country. Czech difficulties in 1997
contrast with earlier achievements of strong GDP growth, a balanced
budget, and inflation and unemployment that were among the lowest in
the region. The Czech economy's transition problems continue to be too
much direct and indirect government influence on the privatized
economy, the sometimes ineffective management of privatized firms, and
a shortage of experienced financial analysts for the banking system.
Prague forecasts a balanced budget, 2.2% GDP growth, 5.2%
unemployment, and 10% inflation for 1998.

GDP: purchasing power parity-$111.9 billion (1997 est.)

GDP-real growth rate: 0.7% (1997 est.)

GDP-per capita: purchasing power parity-$10,800 (1997 est.)

GDP-composition by sector:
agriculture: 5%