epublic is one of the most stable and prosperous of the
post-Communist states of Central and Eastern Europe. Growth in
2000-05 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. The current account deficit has declined to
around 3% of GDP as demand for Czech products in the European Union
has increased. 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 took 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):
$221.4 billion (2006 est.)

GDP (official exchange rate):
$118.9 billion (2006 est.)

GDP - real growth rate:
6.2% (2006 est.)

GDP - per capita (PPP):
$21,600 (2006 est.)

GDP - composition by sector:
agriculture: 2.8%
industry: 37.8%
services: 59.4% (2006 est.)

Labor force:
5.31 million (2006 est.)

Labor force - by occupation:
agriculture: 4.1%
industry: 37.6%
services: 58.3% (2003)

Unemployment rate:
8.4% (2006 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:
27.3 (2003)

Inflation rate (consumer prices):
2.7% (2006 est.)

Investment (gross fixed):
26.2% of GDP (2006 est.)

Budget:
revenues: $57.88 billion
expenditures: $62.53 billion; including capital expenditures of $NA
(2006 est.)

Public debt:
29.1% of GDP (2006 est.)

Agriculture - products:
wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

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

Industrial production growth rate:
9.5% (2006 est.)

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