About the Czech Republic

The Czech Republic possesses a developed, high-income economy with a per capita GDP rate that is 87% of the European Union average. The most stable and prosperous of the post-Communist states, the Czech Republic saw growth of over 6% annually in the three years before the outbreak of the recent global economic crisis. Growth has been led by exports to the European Union, especially Germany, and foreign investment, while domestic demand is reviving.

Most of the economy has been privatised, including the banks and telecommunications. A 2009 survey in cooperation with the Czech Economic Association found that the majority of Czech economists favour continued liberalization in most sectors of the economy. Dividends worth CZK 300 billion were paid to foreign owners in 2013.

The country has been a member of the Schengen Area since 1 May 2004, having abolished border controls, completely opening its borders with all of its neighbours (Germany, Austria, Poland and Slovakia) on 21 December 2007. The Czech Republic became a member of the World Trade Organisation on 1 January 1995. In 2012, Nearly 80% of Czech exports went to, and more than 65% of Czech imports came from, other European Union member states.

The Czech Republic would become the 49th largest economy in the world by 2050 with a GDP of US$ $342 billion.

Monetary policy is conducted by the Czech National Bank, whose independence is guaranteed by the Constitution. The official currency is the Czech koruna. In November 2013, the Czech National Bank started to intervene to weaken the exchange rate of Czech koruna through a monetary stimulus in order to stop the currency from excessive strengthening and to fight against deflation. In late 2016, the CNB stated that the return to conventional monetary policy was planned for mid-2017. When it joined EU, the Czech Republic obligated itself to adopt the euro, but the date of adoption has not been determined.

The Programme for International Student Assessment, coordinated by the OECD, currently ranks the Czech education system as the 15th best in the world, higher than the OECD average. The Czech Republic is ranked 24th in the 2015 Index of Economic Freedom.

In December 2016, Czech GDP growth was 1.9%, giving the Czech economy the average growth in the European Union. The unemployment rate is 3.5%, giving the Czech Republic the lowest unemployment rate in the European Union.