Czech Republic Business

By | January 12, 2022

At the time of the dissolution of Czechoslovakia (1992/93), the Czech Republic held three quarters of the Czechoslovak gross domestic product (GDP). The beginning of the independence of the Czech Republic on January 1, 1993 coincided with the transformation from a planned to a market economy, which began in 1991 with the release of prices, privatization, the liberalization of foreign trade and the introduction of a restrictive financial and wage policy entered its decisive phase. The regulatory and economic change as well as the collapse of the markets in the former Comecon – However, the region initially resulted in an overall economic decline and social polarization for the population (1991–92 decline in GDP by 16%, industrial production by around 20%, private consumption by 37%); At the beginning of 1993 economic stabilization set in, and GDP growth rates ranged between 4 and 6% in the following years. In 1997 and 2012, however, there was a temporary slowdown and recession. In 2014, GDP grew again by 2.0%, which even increased to 4.2% in 2015. Economic development is largely supported by high levels of foreign direct investment (especially from Germany), export growth and the increase in private consumption. The gross national income (GNI) per resident was US $ 18,160 in 2017. The various regions of the Czech Republic have developed very differently in terms of their economic strength. The urban region of Prague has a far above average share of GDP generation and a well-developed infrastructure compared to the rest of the country. Other regions, especially some mining and old industrial areas, are affected by severe structural problems. The inflation rate has remained at a low level since 1999 (2015: 0.3%). The national debt was 41.1% of GDP in 2015. Unemployment (end of 2015: 4.5%) also differs regionally: while Prague is almost full employment, there are over 10% unemployed in the heavy industry regions of North Moravia. S

Foreign trade: According to smber, with the decline of relations with the markets in the Eastern European, formerly socialist states and the takeovers and start-ups by foreign investors, there was a rapid reorientation towards Western European markets and rapid integration into the global economy, also benefiting from the proximity to Germany and Austria. As in previous years, the trade balance was slightly positive in 2015 (imports € 126.8 billion, exports € 142.8 billion). The most important trading partner for exports in 2015 was Germany with a share of around 32.5%, followed by the Slovak Republic with around 9%, Poland with 5.9% and Great Britain with 5.3% (mainly motor vehicles, electronic and mechanical engineering products and Equipments). Germany accounted for 30.1% of imports in 2015, followed by Poland with 9.0%, China with 8.4%, the Slovak Republic with 6.6% and the Netherlands with 5.0% (mainly electronic, chemical and mechanical engineering products, fuels and lubricants). In the regions close to the border with Germany and Austria, lively border trade has developed.


In addition to the capital city of Prague, major tourist attractions are the Bohemian spa and bathing resorts Karlsbad, Marienbad and Franzensbad as well as Teplice and Jáchymov (sources of radium).

Much-visited recreational areas are the low mountain ranges of the Czech Republic, especially the Giant Mountains. Numerous old towns, palaces and castles in Bohemia (especially Central Bohemia) and Moravia, which are characterized by medieval to baroque influences and are in many cases protected as historical monuments, are significant for tourism. The majority of the 7.85 million foreign guests a year come from Germany.

Czech Republic Business