Economy of the Czech Republic

{{Further|Economy of Czechoslovakia|Economy of communist Czechoslovakia}}

The Czech lands were among the first industrialized countries in continental Europe during the German Confederation era. The Czech industrial tradition dates back to the 19th century, when the Lands of the Bohemian Crown were the economic and industrial heartland of the Austrian Empire and later the Austrian side of Austria-Hungary.{{Cite web |last=Mutschlechner |first=Martin |date=2014-06-06 |title=The Czechs in the Habsburg Monarchy |url=https://ww1.habsburger.net/en/chapters/czechs-habsburg-monarchy |access-date=2025-04-08 |website=Der Erste Weltkrieg |language=en}} The Czech lands produced a majority (about 70%) of all industrial goods in the Empire, some of which were almost monopolistic.

After the First World War, the Austrian-Hungarian Empire collapsed and independent Czechoslovakia was created. Czechoslovakia had way too big industrial production for a small internal market and it missed the big market of the former Empire. The Czechoslovak crown was introduced in April 1919 at a 1:1 ratio to the Austro-Hungarian currency, it became one of the most stable currencies in Europe.{{Source?|date=April 2025}} It is a widespread myth among Czechs that the First Republic belonged to the 10 most developed economies of the world. In fact it had the 14th highest GDP per capita in the world. The Czech part (without Slovakia and Transcarpathia) had a similar GDP in the 1920s to Germany and Belgium, which was higher than that of the crisis-struck Austrian First Republic.{{Cite web |last=Houska |first=Ondřej |date=2023-10-27 |title=Vrátíme Česko mezi nejbohatší státy světa, hlásají politici. Jenže Češi tam nikdy nepatřili, ani za Masaryka |url=https://archiv.hn.cz/c1-67259010-vratime-cesko-mezi-nejbohatsi-staty-sveta-hlasaji-politici-jenze-cesi-tam-nikdy-nepatrili-ani-za-masaryka |access-date=2024-10-19 |website=Hospodářské noviny (HN.cz) |language=cs}}

The consequences of the 1938 Munich Agreement and subsequent Nazi Germany occupation were disastrous for the economy. After the occupation and forced subordination of the economy to Nazi German economic interests, the crown was officially pegged to the mark at a ratio of 1:10, even though the unofficial exchange rate was 1 to 6-7 and Germans immediately started buying Czech goods in large quantities.{{cite web|title=History of Czechoslovak currency|url=http://www.zlate-mince.cz/OM9_Ceskoslovenska_mena.htm|website=zlate-mince.cz|access-date=17 July 2014|language=cs}}

After the World War II and the Communist Coup d'etat were all the economies of the socialist countries tightly linked to that of the Soviet Union, in accordance with Stalin's development policy of planned interdependence. Czechoslovakia was the most prosperous country in the Eastern Bloc, however it was during the decades overtaken not only by Austria or Finland but also Southern European economies like that of Italy, Spain or Greece.File:Nové Město, Na příkopě 28, Česká národní banka.jpg headquarters in Prague]]

File:VysokePece1.jpg such as steelmaking is a traditional part of the Czech economy.]]

File:380 005 9 Praha.jpg

The "Velvet Revolution" in 1989, offered a chance for profound and sustained political and economic reform. With the disintegration of the communist economic alliance in 1991, Czech manufacturers lost their traditional markets among former communist countries in the east. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labelled the "big bang" of January 1991. Since then, consistent liberalization and astute economic management has led to the removal of 95% of all price controls, low unemployment, a positive balance of payments position, a stable exchange rate, a shift of exports from former communist economic bloc markets to Western Europe, and relatively low foreign debt. Inflation has been higher than in some other countries – mostly in the 10% range{{Cite web |last=International Monetary Fund |date=October 2023 |title=International Monetary Fund: Czech Republic, 15 INDICATORS, 1980 - 2028 |url=https://www.imf.org/external/datamapper/profile/CZE |url-status=live |archive-url=https://web.archive.org/web/20231216200252/https://www.imf.org/external/datamapper/profile/CZE |archive-date=December 16, 2023 |access-date=2023-12-16 |website=International Monetary Fund}} – and the government has run consistent modest budget deficits.{{Citation needed|date=December 2008}}

Two government priorities have been strict fiscal policies and creating a good climate for incoming investment in the republic. Following a series of currency devaluations, the crown has remained stable in relation to the US dollar.{{Citation needed|date=December 2008}} The Czech crown became fully convertible for most business purposes in late 1995.

In order to stimulate the economy and attract foreign partners, the government has revamped the legal and administrative structure governing investment. With the breakup of the Soviet Union, the country, till that point highly dependent on exports to the USSR, had to make a radical shift in economic outlook: away from the East, and towards the West. This necessitated the restructuring of existing banking and telecommunications facilities, as well as adjusting commercial laws and practices to fit Western standards. Further minimizing reliance on a single major partner, successive Czech governments have welcomed U.S. investment (amongst others) as a counterbalance to the strong economic influence of Western European partners, especially of their powerful neighbour, Germany. Although foreign direct investment (FDI) runs in uneven cycles, with a 12.9% share of total FDI between 1990 and March 1998, the U.S. was the third-largest foreign investor in the Czech economy, behind Germany and the Netherlands.

The country boasts a flourishing consumer production sector and has privatized most state-owned heavy industries through the voucher privatization system. Under the system, every citizen was given the opportunity to buy, for a moderate price, a book of vouchers that represents potential shares in any state-owned company. The voucher holders could then invest their vouchers, increasing the capital base of the chosen company, and creating a nation of citizen share-holders. This is in contrast to Russian privatization, which consisted of sales of communal assets to private companies rather than share-transfer to citizens. The effect of this policy has been dramatic. Under communism, state ownership of businesses was estimated to be 97%.{{Citation needed|date=December 2008}} Privatization through restitution of real estate to the former owners was largely completed in 1992. By 1998, more than 80% of enterprises were in private hands. Now completed,{{Citation needed|date=December 2008}} the program has made Czechs, who own shares of each of the Czech companies, one of the highest per-capita share owners in the world.{{Citation needed|date=January 2009}} On the other hand, by the public is the voucher privatisation seen mostly as unfair and source of corruption.{{Cite web |date=2005-06-01 |title=Why do most Czechs regard early 90s voucher privatisation as unfair? |url=https://english.radio.cz/why-do-most-czechs-regard-early-90s-voucher-privatisation-unfair-8099520 |access-date=2025-04-08 |website=Radio Prague International |language=en}}

File:Škoda Auto Mladá Boleslav.jpg is the largest automobile manufacturer in the Czech Republic.]]

The country's economic transformation was far from complete. 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 formerly pegged currency was forced into a floating system as investors sold their Korunas faster than the government could buy them. This followed a worldwide trend to divest from developing countries that year. Investors also worried the republic's economic transformation was far from complete. Another complicating factor was the current account deficit, which reached nearly 8% of GDP.

In response to the crisis, two austerity packages were introduced later in the spring (called vernacularly "The Packages"), which cut government spending by 2.5% of GDP. Growth dropped to 0.3% in 1997, −2.3% in 1998, and −0.5% in 1999. The government established a restructuring agency in 1999 and launched a revitalization program – to spur the sale of firms to foreign companies. Key priorities included accelerating legislative convergence with EU norms, restructuring enterprises, and privatising banks and utilities. The economy, fueled by increased export growth and investment, was expected to recover by 2000.

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. 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 Český 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.

Growth continued in the first years of the EU membership. The credit portion of the 2008 financial crisis did not affect the Czech Republic much, mostly due to its stable banking sector which has learned its lessons during a smaller crisis in the late 1990s and became much more cautious. As a fraction of the GDP, the Czech public debt is among the smallest ones in Central and Eastern Europe. Moreover, unlike many other post-communist countries, an overwhelming majority of the household debt – over 99% – is denominated in the local Czech currency. That's why the country wasn't affected by the shrunken money supply in the U.S. dollars.

However, as a large exporter, the economy was sensitive to the decrease of the demand in Germany and other trading partners. In the middle of 2009, the annual drop of the GDP for 2009 was estimated around 3% or 4.3%,{{cite web|url=http://www.earthtimes.org/articles/show/278536,czech-economy-to-shrink-by-43-per-cent-in-2009.html|title=Earth Times: show/278536,czech-economy-to-shrink-by-43-per-cent-in-2009.html|access-date=3 March 2015|archive-date=28 December 2017|archive-url=https://web.archive.org/web/20171228171827/http://www.earthtimes.org/articles/show/278536,czech-economy-to-shrink-by-43-per-cent-in-2009.html|url-status=dead}} a relatively modest decrease. The impact of the economic crisis may have been limited by the existence of the national currency that temporarily weakened in H1 of 2009, simplifying the life of the exporters. The Czech Republic has a well-educated population and a densely developed infrastructure.{{cite journal |author=Petr Pabian |date=2009 |title=Europeanisation of higher education governance in the post-communist context: The case of the Czech Republic |journal=European Integration and the Governance of Higher Education and Research |pages=257–278}}

File:Smartwings Hungary Boeing 737-800 HA-LKG.jpg is the major Czech airline holding company with subsidies including the Czech Airlines.]]

Due to the Great Recession, Czech Republic was in stagnation or decreasing of GDP. Some commenters and economists criticising fiscally conservative policy of Petr Nečas' right-wing government, especially criticising ex-minister of finance, Miroslav Kalousek. Miroslav Kalousek in a 2008 interview, as minister of finance in the center-right government of Mirek Topolánek, said "Czech Republic will not suffer by financial crisis".{{cite web|url=http://hn.ihned.cz/c1-28777680-mozna-vas-zklamu-krize-nam-nehrozi|title=Miroslav Kalousek: Moná vás zklamu: krize nám nehrozí|work=Hospodáøské noviny|access-date=3 March 2015|date=2008-10-06}} In September 2008, Miroslav Kalousek formed state budget with projection of 5% GDP increase in 2009. In 2009 and 2010, Czech Republic suffered strong economical crisis and GDP decreased by 4,5%. From 2009 to 2012, Czech Republic suffered highest state budget deficits in history of independent Czech Republic. From 2008 to 2012, the public debt of Czech Republic increased by 18,9%. Most decrease of industrial output was in construction industry (-25% in 2009, -15,5% in 2013). From 4Q 2009 to 1Q 2013, GDP decreased by 7,8%.

In 2012, Czech government increased VAT. Basic VAT was increased from 20% in 2012 to 21% in 2013 and reduced VAT increased from 14% to 15% in 2013. Small enterprises sales decreased by 21% from 2012 to 2013 as result of increasing VAT.{{cite web|url=http://www.kurzy.cz/makroekonomika/sluzby/|title=Služby - vývoj tržeb ve službách v ČR, 2015|access-date=3 March 2015}} Patria.cz predicting sales stagnation and mild increase in 2013.

Another problem is foreign trade. The Czech Republic is considered an export economy (the Czech Republic has strong machinery and automobile industries), however in 2013, foreign trade rapidly decreased which led to many other problems and increase of state budget deficit. In 2013, Czech National Bank, central bank, implemented controversial monetary step. To increase export and employment, CNB wilfully deflated Czech Crown (CZK), which inflation increased from 0.2% in November 2013, to 1.3% in 1Q 2014.

In 2014, GDP in the Czech Republic increased by 2% and is predicted to increase by 2.7% in 2015. In 2015, Czech Republic's economy grew by 4,2% and it's the fastest growing economy in the European Union.{{cite web|url=http://www.ceskatelevize.cz/ct24/ekonomika/314126-ceska-ekonomika-roste-nejrychleji-v-cele-eu/|title=Česká ekonomika roste nejrychleji v celé EU|publisher=ČT24|access-date=9 June 2015}} On 29 May 2015, it was announced that growth of the Czech economy has increased from calculated 3,9% to 4,2%.{{cite web|url=https://www.czso.cz/csu/czso/cri/tvorba-a-uziti-hdp-1-ctvrtleti-2015|title= Tvorba a užití HDP - 1. čtvrtletí 2015, Rychlejší růst české ekonomiky potvrzen (in Czech)|publisher=Czech Statistical Office|access-date=29 May 2015}}File:Praha Nusle Pikrtova 1a.jpg company Avast had its IPO on the Prague Stock Exchange and the London Stock Exchange in 2018. The information and communications technology (ICT) and software development is a major sector of the Czech economy.{{cite journal | doi=10.1787/888933224163 | title=Figure 1.9 Share of ICT sector in total value added, 2013}}]]

In August 2015, Czech GDP growth was 4.4%, making the Czech economy the highest growing in Europe.{{cite news|url=https://www.bloomberg.com/news/articles/2015-08-14/czechs-power-eu-s-fastest-gdp-growth-as-romania-hungary-stumble|title=Czechs Power EU's Fastest GDP Growth as Romania, Hungary Stumble|publisher=Bloomberg Business|access-date=14 August 2015}} On 9 November 2015, unemployment in the Czech Republic was at 5.9%, the lowest number since February 2009.{{cite web|url=http://portal.mpsv.cz/upcr/media/tz/2015/11/2015_11_09_tz_nezamestnanost_rijen.pdf|title=Nezaměstnanost v říjnu opět klesla, lidí bez práce je nejméně od února 2009|access-date=9 November 2015|archive-url=https://web.archive.org/web/20160304061424/http://portal.mpsv.cz/upcr/media/tz/2015/11/2015_11_09_tz_nezamestnanost_rijen.pdf|archive-date=4 March 2016|url-status=dead}} On the other hand, the economy suffers from dividends being paid to the foreign owners of Czech companies (in 2016 worth CZK 289 billion). It is seen as a hurdle to catching up with the Western European economies and as a reason for salaries being only a third of neighbouring Germany or Austria."[http://www.radio.cz/en/section/business/czech-foreign-owned-companies-take-second-biggest-dividend-yield-in-2017report Czech foreign owned companies take second biggest dividend yield in 2017:report]". Radio Prague. 7 March 2018. In 2019 it was described by The Guardian as "one of Europe's most flourishing economies"

The worldwide COVID-19 pandemic in the early 2020's as well as the European energy crisis caused by the Russian full-scale invasion of Ukraine in 2022 hit the Czech economy hard. In 2023, the conservative German newspaper Die Welt called Czechia "Europe's sick man" as it was the only country not to economically recover from the pandemic trap. Furthermore the newspaper highlighting the danger of Czechia being stuck in the middle-income trap,{{Cite web |date=2023-11-13 |title=Czechia is the 'sick man of Europe' says analysis in Germany's Die Welt |url=https://www.expats.cz/czech-news/article/czechia-is-the-sick-man-of-europe-says-analysis-in-germany-die-welt |access-date=2025-04-08 |website=www.expats.cz |language=en}} although it is labelled as high-income country by the World Bank since 2006.

{{See also|Czech Republic and the euro}}

Since its accession to the European Union in 2004, the Czech Republic has adopted the Economic and Monetary Union of the European Union and it is bound by the Treaty of Accession 2003 to adopt the Euro currency in the future.

Although the Czech Republic is economically well positioned to adopt the euro, following the European debt crisis there has been considerable opposition among the public adoption of the euro currency.{{cite press release |url=https://www.sparkasse.at/sPortal/sportal.portal;jsessionid=qhHSJ0FRvFSBNdNpZkKJVhvhHLJD4v1T2d1BG3Gcyj82vJYTDKm3!76983841?_nfpb=true&_windowLabel=LABEL_MAIN&_urlType=action&LABEL_MAIN_sh=181fe8bb390eeff395532e7956f3e368&LABEL_MAIN_action=content.main&LABEL_MAIN_OVERRULEREFRESHBACK=true&LABEL_MAIN_event=changeMain&LABEL_MAIN_chronicleId=%2Febgroup_en_0196%2FChannels%2FPress%2F2008%2F2.QU%2Feb_pi_en_20080508_next_main_Images.akp&LABEL_MAIN_zz=41235.36447435065&LABEL_MAIN_pc=1&_pageLabel=GRID02&cci=09002ee2805dab70&desk=ebgroup_en_0196&navigationId=012130649753268001119092& |title=Euros in the wallets of the Slovaks, but who will be next? |publisher=Sparkasse.at |date=2008-08-05 |access-date=2008-12-21 |archive-url=https://web.archive.org/web/20060904020211/http://www.sparkasse.at/sPortal/sportal.portal |archive-date=2006-09-04 |url-status=dead }} There is no target date by the government for joining the ERM II or adopting the euro.{{cite web|url=http://www.zavedenieura.cz/cs/narodni-koordinacni-skupina/tiskove-centrum/novinky/2016/vlada-prijala-doporuceni-mf-a-cnb-zatim-2691|title=Vláda přijala doporučení MF a ČNB zatím nestanovit cílové datum přijetí eura|language=Czech|publisher=Ministry of Finance (Czech Republic) (zavedenieura.cz)|date=19 December 2016}} The cabinet that was formed following the 2017 legislative election did not plan to proceed with euro adoption within its term,{{cite web |last1=Bukovský |first1=Jaroslav |title=Vstoupit do eurozóny? Až bude euro za dvacet korun, shodli se Babiš s Rusnokem |url=https://www.e15.cz/byznys/burzy-a-trhy/vstoupit-do-eurozony-az-bude-euro-za-dvacet-korun-shodli-se-babis-s-rusnokem-1340644}} and this policy was continued by the succeeding cabinet formed after the 2021 election.[https://zpravy.aktualne.cz/ekonomika/euro-zatim-nebude-nova-vlada/r~e22aa5023bc711ecad06ac1f6b220ee8/ Přijetí eura se na čtyři roky odkládá. Podle vznikající vlády by to "nebylo výhodné"]. Published on 2 November 2021. However, by the start of 2024, President Petr Pavel called on the government to take concrete steps in adopting the euro.{{cite news |title=Pavel: Je načase přijmout euro |url=https://www.novinky.cz/clanek/domaci-novorocni-projev-prezidenta-pavla-40455788 |date=1 January 2024 |work=Novinky.cz |access-date=12 March 2024}}

The Czech Republic also receives €24.2bn between 2014 and 2020 from the European Structural and Investment Funds,[http://ec.europa.eu/regional_policy/en/information/publications/factsheets/2016/european-structural-and-investment-funds-country-factsheet-czech-republic European Structural and Investment Funds: Country factsheet - Czech Republic]. http://ec.europa.eu/. Published on 19/05/2016.{{cite web | url=https://www.strukturalni-fondy.cz/en/Fondy-EU | title=DotaceEU - EU funds in the CZ}} however, this sum does not outweigh the amount of capital outflow of profits of foreign owned firms from the Czech Republic into other EU members, at which the funds are aimed to compensate for.[https://www.economist.com/europe/2018/06/14/germanys-troubled-relations-with-the-visegrad-states-show-the-limits-to-its-power Germany’s troubled relations with the Visegrad states show the limits to its power]. The Economist. 14 June 2018.

File:Praha, Holešovice, Letná, Ministerstvo průmyslu a obchou.jpg]]

{{Expand section|date=August 2017}}

{{See also|Healthcare in the Czech Republic|Welfare in the Czech Republic|European social model}}

Social policy in the Czech Republic addresses issues such as healthcare, education, social welfare, housing and pensions. The government provides [https://vlada.gov.cz/en/jednani-vlady/policy-statement/policy-statement-of-the-government-193762/#public_finance]. Policy statement. Retrieved 20 April 2024. social assistance and benefits to vulnerable groups, including the elderly, disabled, and unemployed. These social safety nets help protect individuals and families against income loss and social risks.

The Czech Republic has elements of the European social model in its welfare system and social policies. However, there are some aspect, where the Czech Republic differs from the model.

The Czech Republic provides universal access to healthcare, and healthcare services are predominantly financed through compulsory health insurance contributions. The country has a well-developed healthcare system that aims to provide essential medical care to all citizens.

The Czech Republic has labor market regulations[https://www.mpsv.cz/web/en]. Ministry of labor and social affairs. Retrieved 20 April 2024. in place to protect workers' rights, ensure fair wages, and promote job security. However, labor market flexibility has increased in recent years, and the country has undertaken labor market reforms to enhance competitiveness.

As of 2016, the Czech Republic has the second lowest poverty rate of OECD members only behind Denmark. The Czech healthcare system ranks 13th in the 2016 Euro health consumer index.{{cite web| url=http://www.healthpowerhouse.com/files/EHCI_2016/EHCI_2016_report.pdf| title=Euro Health Consumer Index 2016| publisher=Health Consumer Powerhouse| access-date=8 April 2017| archive-url=https://web.archive.org/web/20171014090901/https://healthpowerhouse.com/files/EHCI_2016/EHCI_2016_report.pdf| archive-date=14 October 2017| url-status=dead| df=dmy-all}}

File:Praha, Staré město, Burzovní palác.jpg]]

The Czech economy also includes its capital market. In the case of the Czech Republic, it is the Prague Stock Exchange (PSE).{{Cite web|url=https://www.penize.cz/burza-cennych-papiru-praha|title=Prague Stock Exchange}} (PSE). The Prague Stock Exchange is governed by the Capital Market Business Act and the stock exchange rules it sets itself. All of its activities are controlled by the Czech National Bank. The Vienna Stock Exchange is the majority shareholder of the Prague Stock Exchange.

The Prague Stock Exchange has four main markets:

• Prime Market{{Cite web|url=https://www.pse.cz/obchodovani/trhy/prime-market|title=Prime Market}} - a market for trading the largest and most prestigious issues of shares of Czech and foreign companies (the market capitalization of the company should exceed EUR 1 million)
• Standard Market{{Cite web|url=https://www.pse.cz/obchodovani/trhy/standard-market|title=Standard Market}} - a market designed for trading large and prestigious issues of shares of Czech and foreign companies (Market Capitalization of the company should exceed EUR 1 million)
• Free Market{{Cite web|url=https://www.pse.cz/obchodovani/trhy/free-market|title=Free Market}} - a market admits to trading both investment instruments for which the issuer has requested admission to trading and investment instruments traded on other world exchanges which are admitted to trading without the issuer's consent
• START Market{{Cite web|url=https://www.pse.cz/obchodovani/trhy/start-market|title=START Market}} - a market for smaller innovative companies (Small and Medium Enterprises) that wish to raise new capital or whose owners wish to partially or wholly exit their existing business to capitalise their existing operations

The largest issue traded on the Prague Stock Exchange is the energy company ČEZ.{{Cite web|url=https://www.pse.cz/detail/CZ0005112300|title=ČEZ}} The main activity of ČEZ is the sale of electricity, mainly generated from its own sources, and the related provision of support services to the electricity system. Other large issues on the Prague Stock Exchange's Prime Market include banking houses - Komerční banka,{{Cite web|url=https://www.pse.cz/detail/CZ0008019106|title=Komerční banka}} MONETA Money Bank{{Cite web|url=https://www.pse.cz/detail/CZ0008040318|title=MONETA Money Bank}} and the dual listing of the Austrian company Erste Group Bank,{{Cite web|url=https://www.pse.cz/detail/AT0000652011|title=Erste Group Bank}} under which the local bank Česká spořitelna{{Cite web|url=https://www.csas.cz/cs/o-nas/kdo-jsme|title=Erste Group Bank}} falls; as well as Colt CZ Group{{Cite web|url=https://www.pse.cz/detail/CZ0009008942|title=Colt CZ Group}} focusing mainly on the production of firearms (traded on the Prague Stock Exchange from 2020).

From the Standard market, the largest issue is Philip Morris ČR, the largest manufacturer and seller of tobacco products in the Czech Republic. On the START market, we find, for example, e-commerce companies Bezvavlasy{{Cite web|url=https://www.pse.cz/detail/CZ0009011920|title=Bezvavlasy}} and Pilulka Lékárny,{{Cite web|url=https://www.pse.cz/detail/CZ0009009874|title=Pilulka Lékárny}} leather manufacturer and processor KARO Leather{{Cite web|url=https://www.pse.cz/detail/CZ0009008819|title=KARO Leather}} or urban furniture manufacturer mmcité.{{Cite web|url=https://www.pse.cz/detail/CZ0005138826|title=mmcité}}

{{See also|Energy in the Czech Republic|Electricity sector in the Czech Republic}}

In Czech Republic energy production is diverse, with a mix of nuclear, coal, natural gas, and renewable sources. Nuclear power plays a significant role, while efforts to increase renewable usage are underway. The country aims to balance energy security, environmental concerns and sustainability in its energy policies. National objectives are to cut gas emissions by 40 percent by 2030 (compared with 1990) and to construct one nuclear reactor at the current Dukovany NPP site by late 2030s.{{cite web |title=Energy in the Czech Republic |url=https://www.trade.gov/country-commercial-guides/czech-republic-energy |publisher=International trade administration}}{{source attribution}}

The Czech energy sector is largely built around two large nuclear plants and several smaller conventional coal power plants. Nuclear and coal power plants provide primarily baseload power at a high level of utilization, while gas fired units, reservoir hydro and pumped storage provide flexible generation. Recent rises in costs of carbon credits have made coal power plants almost financially inviable. 

in 2022, Czech gross electricity production reached 78.8 terawatt-hours (TWh), while domestic consumption was around 60.4 TWh. The Czech energy mix was made up of 53.60 percent fossil fuels (47.50 percent lignite, 5.86 percent natural gas, etc.), 40.95 percent nuclear power, and 5.46 percent renewables (3.34 percent biomass, 1.47 percent solar, 0.63 percent water, etc.). The first green hydrogen electrolyzer powered by solar energy in the Czech Republic started in May 2023 with production capacity of about 100 kilograms per day / 8,000 kilograms of green hydrogen per year.  

While the goal of EU funds is to support a sustainable low-carbon-emission economy and ensure energy security by utilizing alternative energies, the Czech approach is different. As described in the State Energy Policy, the future Czech energy mix will be primarily based on nuclear power with a goal of reaching 50 percent of the energy supply. Due to EU regulations, the share of coal energy will decrease but be largely replaced by both one (and possibly more) large nuclear reactors. The deployment of a series of small modular reactors is also under consideration by the Czechs. The share of alternative energies will grow but its potential for becoming the backbone of the energy sector is unclear.{{cite web |title=Energy |url=https://www.mpo.cz/en/energy/ |publisher=Ministry of industry and trade}}{{cite web |url=https://sujb.gov.cz/en/ |publisher=State office for nuclear safety|title=Nuclear safety }}

File:GDP per capita development of Czechia.svg

File:Rust ceskeho HDP 97-19.jpg

File:Notation financière des Etats européens par Standard & Poor's.svgs by Standard & Poor's]]

File:Měsíční průměrná mzda v ČR (1990-2015).jpg

File:EU by GNI per capita PPP current international.jpg (current international $). World Bank 2016]]

The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green.{{cite web|url=https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?pr.x=31&pr.y=14&sy=1995&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=935&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP&grp=0&a=|title=Report for Selected Countries and Subjects|website=www.imf.org|access-date=2018-09-15}}

From the CIA World Factbook 2017

GDP (pp.): $353.9 billion (2016)

GDP (nom.): $195.3 billion (2016)

GDP Growth: 2.6% (2016)

GDP per capita (pp.): $33,500 (2016)

GDP per capita (nom.): $18,487 (2016)

GDP by sector:

Agriculture: 2.5%

Industry: 37.5%

Services: 60% (2016)

Inflation: 0.7% (2016)

Labour Force: 5.427 million (2017)

Unemployment: 2,3% (September 2018)[http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Unemployment_rates,_seasonally_adjusted,_July_2016.png Unemployment rates, seasonally adjusted, July 2016]. Eurostat. 31 August 2016.

Industrial production growth rate: 3.5% (2016)

Household income or consumption by percentage share: (2015)

• lowest 10%: 4.1%
• highest 10%: 21.7%

Public Debt: 34.2% GDP (2018)

{{See also|Foreign relations of the Czech Republic}}

Exports: $136.1 billion

Export goods: machinery and transport equipment, raw materials, fuel, chemicals (2018)

Imports: $122.8 billion

Import goods: machinery and transport equipment, raw materials and fuels, chemicals (2018)

Current Account balance: $2.216 billion (2018)

Export partners: Germany 32.4%, Slovakia 8.4%, Poland 5.8%, UK 5.2%, France 5.2%, Italy 4.3%, Austria 4.2% (2016)

Import partners: Germany 30.6%, Poland 9.6%, China 7.5%, Slovakia 6.3%, Netherlands 5.3%, Italy 4.1% (2016)

Reserves: $85.73 billion (31 December 2016)

Foreign Direct Investment: $139.6 billion (31 December 2016)

Czech Investment Abroad: $43.09 billion (31 December 2016)

External debt: $138 billion (31 December 2016)

Value of Publicly Traded Shares: $44.5 billion (31 December 2016)

Exchange rates:

• koruny (Kč) per US$1 – 21.82 Kč (September 2018), 18.75 (December 2010),{{cite web|url=http://www.ceemarket.com/CEE_basic_data.shtml|title=CEE Basic Data - Key economic indicators and forecasts|access-date=3 March 2015}} 18.277 (2007), 23.957 (2005), 25.7 (2004), 28.2 (2003), 32.7 (2002), 38.0 (2001), 38.6 (2001), 34.6 (1999), 32.3 (1998), 31.7 (1997), 27.1 (1996), 26.5 (1995)
• koruny (Kč) per EUR€1 – 27.33 (May 2015), 25.06 (December 2010)

Households with access to fixed and mobile telephone access[http://www.ceeitandtelecom.com/CEE_ICT_data.shtml IT and telecommunications in Central and Eastern Europe] {{webarchive |url=https://web.archive.org/web/20131011091725/http://www.ceeitandtelecom.com/CEE_ICT_data.shtml |date=11 October 2013 }}

• landline telephone – 25% (2009)
• according to the Czech Statistical Office:{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E002419AC/$File/0001132115.xls | title=Obsah nenalezen | ČSÚ}} 55,2% (2005); 31,1% (2008); 27,6% (2009); 24,2% (2010); 23,4% (2011); 21,8% (2012)
• mobile telephone – 94% (2009)
• according to the Czech Statistical Office: 81,2% (2005); 92,4% (2008); 94,6% (2009); 95,6% (2010); 96,2% (2011); 97,0% (2012)

Individuals with mobile telephone access

• according to the Czech Statistical Office:{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E0024189E/$File/0001132118.xls | title=Obsah nenalezen | ČSÚ}} 75,8% (2005); 90,6% (2009); 93,9% (2011); 96,0% (2012); 96,0% (2013)

Broadband penetration rate

• fixed broadband – 19.1% (2010)
• mobile broadband – 3.5% (2010)

Individuals using computer and internet

• computer – 67% (2009)
• according to the Czech Statistical Office:{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E0024193D/$File/0001132119.xls | title=Obsah nenalezen | ČSÚ}} 42,0% (2005); 59,2% (2009); 64,1% (2010); 67,1% (2011); 69,5% (2012); 70,2% (2013)
• internet – 80.9% (2019)
• according to the Czech Statistical Office:{{cite web | url=https://www.czso.cz/documents/10180/122362696/06100520_c.pdf/9a9a97ce-e0c6-42dc-b6ef-b4f66c19b98c?version=1.1|title=Persons and ICT}}Page 4, Table C2 32,1% (2005); 55,9% (2009); 61,8% (2010); 65,5% (2011); 69,5% (2012); 70,4% (2013)

In 2022, the sector with the highest number of companies registered in Czech Republic is Services with 295,538 companies followed by Finance, Insurance, and Real Estate and Wholesale Trade with 189,308 and 95,142 companies respectively.{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/czech%20republic | title=Industry Breakdown of Companies in Czech Republic | website=HitHorizons}}

{{See also|International rankings of the Czech Republic}}

File:Index of Economic Freedom 2018.png 2018]]

• 32nd in Human Development Index (2022)
• 18th in inequality-adjusted Human Development Index (2022)
• 6th in Henley Passport Index (2024){{cite web|url=https://www.henleypassportindex.com/assets/2019/PI%202019%20INFOGRAPHS%20GLOBAL%20190107.pdf |archive-url=https://web.archive.org/web/20190112195048/https://www.henleypassportindex.com/assets/2019/PI%202019%20INFOGRAPHS%20GLOBAL%20190107.pdf |archive-date=2019-01-12 |url-status=live|title=Henley Passport Index |website=www.henleypassportindex.com|access-date=2019-01-08}}
• 24th in Human Capital Index (2018)[http://documents.worldbank.org/curated/en/816281518818814423/pdf/2019-WDR-Report.pdf WORLD DEVELOPMENT REPORT 2019]. The World Bank.
• 16th in Quality of Nationality Index (Henley & Partners, 2018)
• 27th in Legatum Prosperity Index (2019)
• 22nd in Social Progress Index (2019)

• 41st in Ease of doing business index (2019)
• 7th in Economic Complexity Index (2018)
• 26th in Global Competitiveness Report (2022)
• 25th in Global Enabling Trade Report (2016)
• 24th in Global Innovation Index (2019){{cite web | url=https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2019.pdf |archive-url=https://ghostarchive.org/archive/20221010/https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2019.pdf |archive-date=2022-10-10 |url-status=live | title=Global Innovation Index 2019}}
• 21st in Index of Economic Freedom (2018)

{{portal|Czech Republic|Economics}}

• List of Czech regions by GDP
• Czech National Bank
• CzechInvest and CzechStartups.org
• International rankings of the Czech Republic
• Prague Stock Exchange
• Tourism in the Czech Republic
• Transport in the Czech Republic

• Statistická ročenka České republiky (Statistical Yearbook of the Czech Republic) by the Czech Statistical Office. The current line is published annually since 1957. Recent yearbooks can be read [https://web.archive.org/web/20110718160107/http://www.praha.czso.cz/eng/redakce.nsf/i/statistical_yearbooks_of_the_czech_republic online] (in Czech and English).
• Czechoslovakia published its first statistical yearbook in 1920. Historically used names: Statistická příručka Republiky československé, Statistická ročenka Protektorátu Čechy a Morava (during the occupation) and Statistická ročenka Československé socialistické republiky.
• Statistics about the Czech lands in Austria-Hungary were collected by Zemský statistický úřad Království českého (Provincial Statistical Office of the Czech Kingdom) founded in 1897. Two detailed books (in Czech and German) were published in 1909 and 1913.
• Benacek, Vladimir: economics of alliances and (dis)integration, an alternative interpretation of transition illustrated on Czech economic history (June 2002) - 25 p.
• Horvath, Julius: the Czech currency crisis of 1997 - En: Dabrovski, Marek: currency crises in emerging markets - New York: Springer, 2003 - p. 221-234
• OECD: economic surveys, Czech republic, 1991-2018 (OECD iLibrary)
• Zidek, Libor: from central planning to the market, the transformation of the Czech economy 1989-2004 Budapest: CEU press, 2017

{{Reflist|35em|refs=

Federica Cocco. [https://www.ft.com/content/eacb2221-86f3-3be6-b3a9-075f0415367f Israel and the US have the highest poverty rates in the developed world]. Financial Times. Published on 19 October 2016.

{{cite web| url = http://ec.europa.eu/eurostat/statistics-explained/index.php/Unemployment_statistics| title = Unemployment rates, seasonally adjusted, March 2018 (%)}}

{{cite web|url=http://reports.weforum.org/global-competitiveness-report-2018/|title=The Global Competitiveness Report 2018|access-date=17 October 2018}}

}}

• [https://web.archive.org/web/20080530205253/http://www.czech.cz/en/economy-business-science/doing-business/ OECD Economic Survey of the Czech Republic]
• [http://eng.kurzy.cz/cnb/ Czech economic indicators] Latest indicators collected by Czech national bank
• [http://www.oecd.org/czech/ OECD's Czech Republic country Web site]
• {{webarchive |url=https://web.archive.org/web/20080530205253/http://www.czech.cz/en/economy-business-science/doing-business/ |date=30 May 2008 |title=Doing business in Czech Republic }}
• [https://web.archive.org/web/20041130030257/http://www.czso.cz/eng/csu.nsf/aktualniinformace Current economic data]
• {{webarchive |url=https://web.archive.org/web/20080611164507/http://www.czech.cz/en/economy-business-science/general-information/economy-development-and-potential/ |date=11 June 2008 |title=Economy: Development and potential }}
• [http://econposguerra.blogspot.com/ Maldonado, Carlos Gustavo: República checa, transición del socialismo de Estado a la economía de mercado - En: economía de posguerra, blog de historia económica global] {{Webarchive|url=https://web.archive.org/web/20210507143715/http://econposguerra.blogspot.com/ |date=7 May 2021 }}
• [http://www.ceemarket.com/CEE_basic_data.shtml Economy of the Czech Republic – Annual Trends]
• [http://wits.worldbank.org/CountryProfile/Country/CZE/Year/2012/Summary World Bank Summary Trade Statistics Czech Republic]

{{Czech Republic topics}}

{{Members of the European Union (EU)}}

{{Organisation for Economic Co-operation and Development}}

{{Economy of Europe}}

Czech Republic

Czech Republic

Czech Republic