Of the emerging democracies in central and eastern Europe, the Czech Republic has one of the most developed industrialized economies[?]. Its strong industrial tradition dates to the 19th century, when Bohemia and Moravia were the economic heartland of the Austro-Hungarian Empire. Today, this heritage is both an asset and a liability. The Czech Republic has a well-educated population and a well- developed infrastructure, but its industrial plants and much of its industrial equipment are obsolete.
According to the Stalinist development policy of planned interdependence, all the economies of the socialist countries were linked tightly with that of the Soviet Union. With the disintegration of the communist economic alliance in 1991, Czech manufacturers lost their traditional markets among former communist countries to the east, some of which still owe the former Czechoslovakia sizable debts.
The Czech Republic is reducing its dependence on highly polluting low-grade brown coal as a source of energy. Nuclear energy presently provides about 25% of total power needs, and its share is projected to increase to 40%. Norway (via pipelines through Germany) and Russia also supply the Czech Republic with liquid and natural gas.
The principal industries are heavy and general machine-building, iron and steel production, metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china, ceramics, and pharmaceuticals. Its main agricultural products are sugarbeets[?], fodder roots[?], potatoes, wheat, and hops.
The "Velvet Revolution" in 1989 offered a chance for profound and sustained economic reform. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labeled the "big bang" of January 1991. Since then, astute economic management has led to the liberalization of 95% of all price controls, annual inflation in the 10% range, modest budgetary deficits, 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[?].
Particularly impressive have been the Republic's strict fiscal policies. Following a series of currency devaluations, the crown has remained stable in relation to the U.S. dollar. The Czech crown became fully convertible for most business purposes in late 1995.
In addition, the government has revamped the legal and administrative structure governing investment in order to stimulate the economy and attract foreign partners. Shifting emphasis from the East to the West has necessitated restructuring existing facilities in banking and telecommunications as well as adjusting commercial laws and practices to fit Western standards. The republic has made progress toward creating a stable investment climate.
This success has enabled the Czech Republic to become the first post-communist country to receive an investment-grade credit rating by international credit institutions. Successive Czech governments have welcomed U.S. investment, in particular, as a counter-balance to the strong economic influence of Western Europe, especially of their powerful neighbor, 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 republic 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, infusing the chosen company with valuable capital. State ownership of businesses was estimated to be about 97% under communism. In 1998, more than 80% of enterprises are in private hands. When the voucher privatization process is complete, Czechs will own shares of each of the Czech companies, making them one of the highest per capita share owners in the world. Privatization through restitution of real estate to the former owners was largely completed in 1992.
The republic's economic transformation is far from complete. A recession in 1998 revealed that the government still faces serious challenges in completing industrial restructuring, increasing transparency in capital market transactions, fully privatizing the banking sector, transforming the housing[?] sector, privatizing the health care system, and solving serious environmental problems.
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 nearly 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 gross domestic product. Growth dropped to 0.3% in 1997, -2.3% in 1998, and -0.5% in 1999. The basic transition problem continues to be too much direct and indirect government influence on the privatized economy. The government established a restructuring agency in 1999 and launched a revitalization program - to spur the sale of firms to foreign companies. Key priorities include accelerating legislative convergence with EU norms, restructuring enterprises, and privatizing banks and utilities. The economy, fueled by increased export growth and investment, is expected to recover in 2000.
GDP: purchasing power parity - $120.8 billion (1999 est.)
GDP - real growth rate: -0.5% (1999 est.)
GDP - per capita: purchasing power parity - $11,700 (1999 est.)
GDP - composition by sector:
agriculture:
5%
industry:
42%
services:
53% (1999 est.)
Population below poverty line: NA%
Household income or consumption by percentage share:
lowest 10%:
4.6%
highest 10%:
23.5% (1993)
Inflation rate (consumer prices): 2.5% (1999 est.)
Labor force: 5.203 million (1999 est.)
Labor force - by occupation: industry 32%, agriculture 5.6%, construction 8.7%, transport and communications 6.9%, services 46.8% (1997 est.)
Unemployment rate: 9% (1999 est.)
Budget:
revenues:
$16.4 billion
expenditures:
$17.3 billion, including capital expenditures of $NA (1999)
Industries: fuels, ferrous metallurgy, machinery and equipment, coal, motor vehicles, glass, armaments
Industrial production growth rate: -4% (1999 est.)
Electricity - production: 61.466 billion kWh (1998)
Electricity - production by source:
fossil fuel:
75.54%
hydro:
2.55%
nuclear:
20.37%
other:
1.54% (1998)
Electricity - consumption: 54.733 billion kWh (1998)
Electricity - exports: 10.8 billion kWh (1998)
Electricity - imports: 8.37 billion kWh (1998)
Natural resources: Coal, coke, timber, lignite, uranium, magnesite.
Industry: Types--iron, steel, machinery and equipment, cement, sheet glass, motor vehicles, armaments, chemicals, ceramics, wood, paper products, and footwear.
Agriculture - products: wheat, rye, oats, corn, barley, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry, horses; forest products
Exports: $26.9 billion (f.o.b., 1999)
Exports - commodities: machinery and transport equipment 41%, other manufactured goods 40%, chemicals 8%, raw materials and fuel 7% (1998)
Exports - partners: Germany 42%, Slovakia 8%, Austria 6%, Poland 6%, France 4% (1999)
Imports: $29 billion (f.o.b., 1999)
Imports - commodities: machinery and transport equipment 39%, other manufactured goods 21%, chemicals 12%, raw materials and fuels 10%, food 5% (1998)
Imports - partners: Germany 34%, Slovakia 6%, Russia 6%, Austria 6%, France 5% (1999)
Debt - external: $24.3 billion (1999 est.)
Economic aid - recipient: $351.6 million (1995)
Currency: 1 koruna (Kc) = 100 haleru
Exchange rates: koruny (Kcs) per US$1 - 35.630 (December 1999), 34.569 (1999), 32.281 (1998), 31.698 (1997), 27.145 (1996), 26.541 (1995)
Fiscal year: calendar year
- See also : Czech Republic
Common misspelling and questions (FAQ)
conomy-of-the-czech-republic eonomy-of-the-czech-republic ecnomy-of-the-czech-republic ecoomy-of-the-czech-republic econmy-of-the-czech-republic econoy-of-the-czech-republic econom-of-the-czech-republic economyof-the-czech-republic economy-f-the-czech-republic economy-o-the-czech-republic economy-ofthe-czech-republic economy-of-he-czech-republic economy-of-te-czech-republic economy-of-th-czech-republic economy-of-theczech-republic economy-of-the-zech-republic economy-of-the-cech-republic economy-of-the-czch-republic economy-of-the-czeh-republic economy-of-the-czec-republic economy-of-the-czechrepublic economy-of-the-czech-epublic economy-of-the-czech-rpublic economy-of-the-czech-reublic economy-of-the-czech-repblic economy-of-the-czech-repulic economy-of-the-czech-repubic economy-of-the-czech-republc economy-of-the-czech-republi ceonomy-of-the-czech-republic eocnomy-of-the-czech-republic ecnoomy-of-the-czech-republic ecoonmy-of-the-czech-republic econmoy-of-the-czech-republic econoym-of-the-czech-republic econom-yof-the-czech-republic economyo-f-the-czech-republic economy-fo-the-czech-republic economy-o-fthe-czech-republic economy-oft-he-czech-republic economy-of-hte-czech-republic economy-of-teh-czech-republic economy-of-th-eczech-republic economy-of-thec-zech-republic economy-of-the-zcech-republic economy-of-the-cezch-republic economy-of-the-czceh-republic economy-of-the-czehc-republic economy-of-the-czec-hrepublic economy-of-the-czechr-epublic economy-of-the-czech-erpublic economy-of-the-czech-rpeublic economy-of-the-czech-reupblic economy-of-the-czech-repbulic economy-of-the-czech-repulbic economy-of-the-czech-repubilc economy-of-the-czech-republci economy-of-the-czech-republi eeconomy-of-the-czech-republic ecconomy-of-the-czech-republic ecoonomy-of-the-czech-republic econnomy-of-the-czech-republic econoomy-of-the-czech-republic econommy-of-the-czech-republic economyy-of-the-czech-republic economy--of-the-czech-republic economy-oof-the-czech-republic economy-off-the-czech-republic economy-of--the-czech-republic economy-of-tthe-czech-republic economy-of-thhe-czech-republic economy-of-thee-czech-republic economy-of-the--czech-republic economy-of-the-cczech-republic economy-of-the-czzech-republic economy-of-the-czeech-republic economy-of-the-czecch-republic economy-of-the-czechh-republic economy-of-the-czech--republic economy-of-the-czech-rrepublic economy-of-the-czech-reepublic economy-of-the-czech-reppublic economy-of-the-czech-repuublic economy-of-the-czech-repubblic economy-of-the-czech-republlic economy-of-the-czech-republiic economy-of-the-czech-republicc 3conomy-of-the-czech-republic wconomy-of-the-czech-republic sconomy-of-the-czech-republic 4conomy-of-the-czech-republic dconomy-of-the-czech-republic 4conomy-of-the-czech-republic rconomy-of-the-czech-republic dconomy-of-the-czech-republic edonomy-of-the-czech-republic exonomy-of-the-czech-republic efonomy-of-the-czech-republic efonomy-of-the-czech-republic evonomy-of-the-czech-republic ec9nomy-of-the-czech-republic ecinomy-of-the-czech-republic ecknomy-of-the-czech-republic ec0nomy-of-the-czech-republic eclnomy-of-the-czech-republic ec0nomy-of-the-czech-republic ecpnomy-of-the-czech-republic eclnomy-of-the-czech-republic ecohomy-of-the-czech-republic ecobomy-of-the-czech-republic ecojomy-of-the-czech-republic ecojomy-of-the-czech-republic ecomomy-of-the-czech-republic econ9my-of-the-czech-republic econimy-of-the-czech-republic econkmy-of-the-czech-republic econ0my-of-the-czech-republic econlmy-of-the-czech-republic econ0my-of-the-czech-republic econpmy-of-the-czech-republic econlmy-of-the-czech-republic econojy-of-the-czech-republic econony-of-the-czech-republic econoky-of-the-czech-republic econoky-of-the-czech-republic econo,y-of-the-czech-republic econom6-of-the-czech-republic economt-of-the-czech-republic economg-of-the-czech-republic econom7-of-the-czech-republic economh-of-the-czech-republic econom7-of-the-czech-republic economu-of-the-czech-republic economh-of-the-czech-republic economy0of-the-czech-republic economypof-the-czech-republic economy[of-the-czech-republic economy-9f-the-czech-republic economy-if-the-czech-republic economy-kf-the-czech-republic economy-0f-the-czech-republic economy-lf-the-czech-republic economy-0f-the-czech-republic economy-pf-the-czech-republic economy-lf-the-czech-republic economy-or-the-czech-republic economy-od-the-czech-republic economy-oc-the-czech-republic economy-ot-the-czech-republic economy-ov-the-czech-republic economy-ot-the-czech-republic economy-og-the-czech-republic economy-ov-the-czech-republic economy-of0the-czech-republic economy-ofpthe-czech-republic economy-of[the-czech-republic economy-of-5he-czech-republic economy-of-rhe-czech-republic economy-of-fhe-czech-republic economy-of-6he-czech-republic economy-of-ghe-czech-republic economy-of-6he-czech-republic economy-of-yhe-czech-republic economy-of-ghe-czech-republic economy-of-tye-czech-republic economy-of-tge-czech-republic economy-of-tbe-czech-republic economy-of-tue-czech-republic economy-of-tne-czech-republic economy-of-tue-czech-republic economy-of-tje-czech-republic economy-of-tne-czech-republic economy-of-th3-czech-republic economy-of-thw-czech-republic economy-of-ths-czech-republic economy-of-th4-czech-republic economy-of-thd-czech-republic economy-of-th4-czech-republic economy-of-thr-czech-republic economy-of-thd-czech-republic economy-of-the0czech-republic economy-of-thepczech-republic economy-of-the[czech-republic economy-of-the-dzech-republic economy-of-the-xzech-republic economy-of-the-fzech-republic economy-of-the-fzech-republic economy-of-the-vzech-republic economy-of-the-caech-republic economy-of-the-csech-republic economy-of-the-csech-republic economy-of-the-cxech-republic economy-of-the-cz3ch-republic economy-of-the-czwch-republic economy-of-the-czsch-republic economy-of-the-cz4ch-republic economy-of-the-czdch-republic economy-of-the-cz4ch-republic economy-of-the-czrch-republic economy-of-the-czdch-republic economy-of-the-czedh-republic economy-of-the-czexh-republic economy-of-the-czefh-republic economy-of-the-czefh-republic economy-of-the-czevh-republic economy-of-the-czecy-republic economy-of-the-czecg-republic economy-of-the-czecb-republic economy-of-the-czecu-republic economy-of-the-czecn-republic economy-of-the-czecu-republic economy-of-the-czecj-republic economy-of-the-czecn-republic economy-of-the-czech0republic economy-of-the-czechprepublic economy-of-the-czech[republic economy-of-the-czech-4epublic economy-of-the-czech-eepublic economy-of-the-czech-depublic economy-of-the-czech-5epublic economy-of-the-czech-fepublic economy-of-the-czech-5epublic economy-of-the-czech-tepublic economy-of-the-czech-fepublic economy-of-the-czech-r3public economy-of-the-czech-rwpublic economy-of-the-czech-rspublic economy-of-the-czech-r4public economy-of-the-czech-rdpublic economy-of-the-czech-r4public economy-of-the-czech-rrpublic economy-of-the-czech-rdpublic economy-of-the-czech-re0ublic economy-of-the-czech-reoublic economy-of-the-czech-relublic economy-of-the-czech-re-ublic economy-of-the-czech-re;ublic economy-of-the-czech-re-ublic economy-of-the-czech-re[ublic economy-of-the-czech-re;ublic economy-of-the-czech-rep7blic economy-of-the-czech-repyblic economy-of-the-czech-rephblic economy-of-the-czech-rep8blic economy-of-the-czech-repjblic economy-of-the-czech-rep8blic economy-of-the-czech-repiblic economy-of-the-czech-repjblic economy-of-the-czech-repuglic economy-of-the-czech-repuvlic economy-of-the-czech-repuhlic economy-of-the-czech-repuhlic economy-of-the-czech-repunlic economy-of-the-czech-repuboic economy-of-the-czech-repubkic economy-of-the-czech-repub,ic economy-of-the-czech-repubpic economy-of-the-czech-repub.ic economy-of-the-czech-repubpic economy-of-the-czech-repub;ic economy-of-the-czech-repub.ic economy-of-the-czech-republ8c economy-of-the-czech-republuc economy-of-the-czech-republjc economy-of-the-czech-republ9c economy-of-the-czech-republkc economy-of-the-czech-republ9c economy-of-the-czech-republoc economy-of-the-czech-republkc economy-of-the-czech-republid economy-of-the-czech-republix economy-of-the-czech-republif economy-of-the-czech-republif economy-of-the-czech-republiv economy-of-the-czech-republyc economy-of-yhe-czech-republic economy-of-tyhe-czech-republic economy-of-the-czech-republicsSidgwick & Jackson.] That spire is gone that slept for centuries, And now the water holds but empty skies For here, among these old and human things, And goes upon his way with moaning wings. On pavements by the kneeling herdsmen worn Above the Saints a village Christ forlorn, But leaden stillness, when the thunder wanes, And settling low upon the listless plains. "Beb," as we called him, married Lady Cynthia Charteris, a lovely interesting friend of mine, the present Countess of Wemyss. Our third son, Arthur Asquith, was one of the great soldiers of Lady Manners, a woman who has never failed me in affection and September, 1914, and was attached at first to the "Anson," and the early days of October, 1914, he took part in the operations at Blandford, went in February, 1915, with his battalion to the He was in all the fighting on the Gallipoli peninsula and was the final evacuation of Helles, in January, 1916. In the following May the Naval Division joined the army in France, commanded by Commander Freyberg, V. C.) formed part of the.