Czechia Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Czechia is a prosperous market economy that boasts one of the highest GDP growth rates and lowest unemployment levels in the EU, but its dependence on exports makes economic growth vulnerable to contractions in external demand. Czechia’s exports comprise some 80% of GDP and largely consist of automobiles, the country’s single largest industry. Czechia acceded to the EU in 2004 but has yet to join the euro-zone. While the flexible koruna helps Czechia weather external shocks, it was one of the world’s strongest performing currencies in 2017, appreciating approximately 16% relative to the US dollar after the central bank (Czech National Bank - CNB) ended its cap on the currency’s value in early April 2017, which it had maintained since November 2013. The CNB hiked rates in August and November 2017 - the first rate changes in nine years - to address rising inflationary pressures brought by strong economic growth and a tight labor market.

 

Since coming to power in 2014, the new government has undertaken some reforms to try to reduce corruption, attract investment, and improve social welfare programs, which could help increase the government’s revenues and improve living conditions for Czechs. The government introduced in December 2016 an online tax reporting system intended to reduce tax evasion and increase revenues. The government also plans to remove labor market rigidities to improve the business climate, bring procurement procedures in line with EU best practices, and boost wages. The country's low unemployment rate has led to steady increases in salaries, and the government is facing pressure from businesses to allow greater migration of qualified workers, at least from Ukraine and neighboring Central European countries.

 

Long-term challenges include dealing with a rapidly aging population, a shortage of skilled workers, a lagging education system, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

Real GDP (purchasing power parity)

$409.97 billion (2020 est.)

$434.31 billion (2019 est.)

$424.48 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.27% (2019 est.)

3.18% (2018 est.)

5.35% (2017 est.)

Real GDP per capita

$38,300 (2020 est.)

$40,700 (2019 est.)

$39,900 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$250.631 billion (2019 est.)

Inflation rate (consumer prices)

2.8% (2019 est.)

2.1% (2018 est.)

2.4% (2017 est.)

Credit ratings

Fitch rating: AA- (2018)

Moody's rating: Aa3 (2019)

Standard & Poors rating: AA- (2011)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 2.3% (2017 est.)

industry: 36.9% (2017 est.)

services: 60.8% (2017 est.)

GDP - composition, by end use

household consumption: 47.4% (2017 est.)

government consumption: 19.2% (2017 est.)

investment in fixed capital: 24.7% (2017 est.)

investment in inventories: 1.1% (2017 est.)

exports of goods and services: 79.9% (2017 est.)

imports of goods and services: -72.3% (2017 est.)

Agricultural products

wheat, sugar beet, milk, barley, rapeseed, potatoes, maize, pork, triticale, poultry

Industries

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

Industrial production growth rate

7.5% (2017 est.)

Labor force

5.222 million (2020 est.)

Labor force - by occupation

agriculture: 2.8%

industry: 38%

services: 59.2% (2015)

Unemployment rate

2.8% (2019 est.)

3.18% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 8.2%

male: 7.6%

female: 9.1% (2021 est.)

Population below poverty line

10.1% (2018 est.)

Gini Index coefficient - distribution of family income

24.9 (2017 est.)

25.1 (2014)

Household income or consumption by percentage share

lowest 10%: 4.1%

highest 10%: 21.7% (2015 est.)

Budget

revenues: 87.37 billion (2017 est.)

expenditures: 83.92 billion (2017 est.)

Budget surplus (+) or deficit (-)

1.6% (of GDP) (2017 est.)

Public debt

34.7% of GDP (2017 est.)

36.8% of GDP (2016 est.)

Taxes and other revenues

40.5% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$678 million (2019 est.)

$1.259 billion (2018 est.)

Exports

$174.92 billion (2020 est.)

$186.54 billion (2019 est.)

$191.69 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Germany 31%, Slovakia 7%, Poland 6%, France 5% (2019)

Exports - commodities

cars and vehicle parts, computers, broadcasting equipment, office machinery/parts, seating (2019)

Imports

$157.95 billion (2020 est.) note: data are in current year dollars

$171.43 billion (2019 est.) note: data are in current year dollars

$176.78 billion (2018 est.) note: data are in current year dollars

Imports - partners

Germany 27%, China 12%, Poland 9%, Slovakia 5% (2019)

Imports - commodities

broadcasting equipment, cars and vehicle parts, office machinery/parts, computers, packaged medicines (2019)

Reserves of foreign exchange and gold

$148 billion (31 December 2017 est.)

$85.73 billion (31 December 2016 est.)

Debt - external

$191.871 billion (2019 est.)

$200.197 billion (2018 est.)

Exchange rates

koruny (CZK) per US dollar -

21.76636 (2020 est.)

23.0629 (2019 est.)

22.71439 (2018 est.)

24.599 (2014 est.)

20.758 (2013 est.)

NOTE: The information regarding Czechia on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Czechia 2022 information contained here. All suggestions for corrections of any errors about Czechia 2022 should be addressed to the CIA or the source cited on each page.