View source for Economy of the Czech Republic

{{Short description|none}}
{{use dmy dates|date=February 2017}}
{{outdated as of|topic=Infobox economy|last updated=2015}}
{{Infobox economy
| country = Czech Republic
| image = BB Centrum, Prague, Czech Republic.jpg
| image_size = 310px
| caption = Business district in [[Prague]]
| currency = [[Czech koruna]] ([[CZK]])
| year = [[Calendar year]]
| organs = [[EU]], [[EEA]], [[World Trade Organization|WTO]] (via EU membership) and [[OECD]]
| group = {{plainlist|
*[[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
*Diversified European (EU) economy<ref name="Central Intelligence Agency World Factbook"/>}}
| population = {{increase}} 10,900,555 (31 December 2023)<ref>{{Cite web|url=https://www.czso.cz/csu/czso/population|title=Population}}</ref>
| gdp = {{plainlist|
*{{increase}} $360.23 billion (nominal, 2025)<ref name="IMFWEOCZ">{{cite web |url=https://www.imf.org/external/datamapper/profile/CZE |title=World Economic Outlook database: April 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*{{increase}} $745.54 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOCZ"/>}}
| gdp rank = {{plainlist|
*{{nowrap|[[List of countries by GDP (nominal)|45th (nominal, 2024)]]}}
*[[List of countries by GDP (PPP)|47th (PPP, 2024)]]}}
| growth = {{plainlist|
*0.7% (2024)<ref name="IMFWEOCZ"/>
*2.4% (2025)
*2.6% (2026)
}}
| per capita = {{plainlist|
*{{increase}} $33,040 (nominal, estimate, 2025)
*{{increase}} $59,368 (PPP, 2025)<ref name="IMFWEOCZ"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP per capita (nominal)|36th (nominal, 2025)]]
*[[List of countries by GDP per capita (PPP)|31th (PPP, 2025)]]}}
| cpi = {{decrease}} 56 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|44th]])
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 2.3%
*[[Secondary sector of the economy|industry]]: 36.9%
*[[Tertiary sector of the economy|services]]: 60.8%
*(2017)<ref name="Central Intelligence Agency World Factbook">{{Cite CIA World Factbook|country=Czechia|access-date=14 February 2017}}</ref>}}
| inflation = 2% (2024)<ref name="IMFWEOCZ"/>
| bankrate = 3.75% (since 7 February 2025)<ref>{{cite web |url=https://www.cnb.cz/cs/menova-politika/br-zapisy-z-jednani/ |archive-url=https://web.archive.org/web/20250506160732/https://www.cnb.cz/cs/menova-politika/br-zapisy-z-jednani/ |archive-date=2025-05-06 |url-status=live|title=Rozhodnutí bankovní rady ČNB |publisher=[[ČNB]] |website=cnb.cz |access-date=6 May 2025}}</ref>
| poverty = {{plainlist|
*9.5% (2023)<ref>{{cite web|url=https://www.novinky.cz/clanek/ekonomika-chudoba-v-cesku-ohrozuje-miliony-lidi-vcetne-stredni-tridy-40448308#dop_ab_variant=1181001&dop_source_zone_name=novinky.sznhp.box&dop_req_id=fpp6cxNGu0I-202310251753&dop_id=40448308&source=hp&seq_no=4|title= Vic než Milion Čechů žije pod hranicí chudoby. Potvrzují to data Českého statistického úřadu|publisher=info.cz|date=18 March 2021|access-date=26 September 2021}}</ref>
*{{decreasePositive}} 19% at risk of poverty or social exclusion (2023)<ref>{{cite web |url=https://www.novinky.cz/clanek/ekonomika-chudoba-v-cesku-ohrozuje-miliony-lidi-vcetne-stredni-tridy-40448308#dop_ab_variant=1181001&dop_source_zone_name=novinky.sznhp.box&dop_req_id=fpp6cxNGu0I-202310251753&dop_id=40448308&source=hp&seq_no=4 |archive-url=https://ghostarchive.org/archive/20221010/https://www.eapn.eu/wp-content/uploads/2020/10/EAPN-PW-2020-Czech-Republic-ENG-4746.pdf |archive-date=2022-10-10 |url-status=live|title=People at risk of poverty or social exclusion |publisher=[[EAPN CR & EU, 2020]] |website=ec.europa.eu |access-date=3 July 2020}}</ref>}}
| gini = {{decreasePositive}} 23.7 {{color|green|low}} (2024)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |title=Gini coefficient of equivalised disposable income |publisher=[[Eurostat]] |website=ec.europa.eu |access-date=6 May 2025}}</ref>
| hdi = {{plainlist|
*{{increase}} 0.915 {{color|darkgreen|very high}} (2023)<ref name="czhdi">{{cite book |last1=Conceição |first1=Pedro |title=Human Development Report 2025 |date=6 May 2025 |publisher=United Nations Development Programme |location=New York |isbn=9789211542639 |url=https://hdr.undp.org/content/human-development-report-2025}}</ref> ([[List of countries by Human Development Index|29th]])
*{{increase}} 0.867 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (15th)]] (2023)<ref name="czhdi"/>}}
| labor = {{plainlist|
*{{decrease}} 5,378,192 (2020)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=CZ&most_recent_value_desc=true |title=Labor force, total – Czech Republic |publisher=[[World Bank]] |website=data.worldbank.org |access-date=18 November 2021}}</ref>
*{{increasePositive}} 81.7% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group 20-64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=20 July 2024}}</ref>}}
| occupations = {{plainlist|
* [[Primary sector of the economy|agriculture]] 2.8%
* [[Secondary sector of the economy|industry]] 38%
* [[Tertiary sector of the economy|services]] 59.2%
*(2015)<ref>[https://web.archive.org/web/20070613005003/https://www.cia.gov/library/publications/the-world-factbook/fields/2048.html LABOR FORCE – BY OCCUPATION]. [[The World Factbook]].</ref>}}
| unemployment = {{plainlist|
*{{increaseNegative}} 2.6% (September 2021)<ref>{{cite web |url=https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=une_rt_m&lang=en |title=Unemployment by sex and age - monthly average |publisher=[[Eurostat]] |website=appsso.eurostat.ec.europa.eu |access-date=18 November 2021}}</ref>
*{{increaseNegative}} 8.9% youth unemployment (15 to 24 year-olds; July 2020)<ref>{{cite web |url=https://data.oecd.org/chart/6592 |title=Unemployment rate by age group |publisher=[[OECD]] |website=data.oecd.org |access-date=7 September 2020}}</ref>}}
| average gross salary = 45 854 Kč (~€1,832; Q2 2024 average)<ref name="CSU2024">{{cite web | title=2. čtvrtletí 2024 | website=Český statistický úřad  | date=2025-03-06 | url=https://csu.gov.cz/rychle-informace/prumerne-mzdy-2-ctvrtleti-2024 | language=cs | access-date=2025-05-11}}</ref><br>38,529 Kč (~€1,539; Q2 2024 median)<ref name="CSU2024" />
| industries = {{hlist|Engineering|electronics|motor vehicles|metallurgy|machinery|chemicals|pharmaceuticals}}
| exports = $241.69 billion (2022)<ref name="world bank export import">{{cite web| url = https://wits.worldbank.org/CountryProfile/en/Country/CZE/Year/LTST/TradeFlow/EXPIMP/Partner/by-country| title = Czech Republic exports, imports and trade balance By Country 2022}}</ref>
| export-goods = {{hlist|Machinery|precision engineering equipment|transport equipment|electronics|pharmaceuticals|medical equipment}}
| export-partners = {{plainlist|
*{{flag|Germany}} 32.7%
*{{flag|Slovakia}} 8.4%
*{{flag|Poland}} 7.1%
*{{flag|France}} 4.6%
*{{flag|Austria}} 4.4%
*{{flag|Italy}} 4.1%
*{{flag|Netherlands}} 3.6%
*{{flag|United Kingdom}} 3.6%
*{{flag|Hungary}} 3.4%
*{{flag|Spain}} 2.6%

*(2022)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#ez|archive-url=https://web.archive.org/web/20070613004055/https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#ez|url-status=dead|archive-date=13 June 2007|title=Export Partners of Czech Republic|publisher=[[CIA World Factbook]]|year=2012|access-date=24 July 2013}}</ref>}}
| imports = $236.32 billion (2022)<ref name="world bank export import"/>
| import-goods = {{hlist|Machinery components|raw materials and fuels|chemicals}}
| import-partners = {{plainlist|
*{{flag|Germany}} 19.8%
*{{flag|China}} 18.8%
*{{flag|Poland}} 8.0%
*{{flag|Russia}} 4.8%
*{{flag|Slovakia}} 4.2%
*{{flag|Italy}} 3.8%
*{{flag|Netherlands}} 2.8%
*{{flag|France}} 2.7%
*{{flag|Austria}} 2.7%
*{{flag|United States}} 2.6%
*(2022)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#ez|archive-url=https://web.archive.org/web/20070613003031/https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#ez|url-status=dead|archive-date=13 June 2007|title=Import Partners of Czech Republic|publisher=[[CIA World Factbook]]|year=2012|access-date=24 July 2013}}</ref>}}
| FDI = {{plainlist|
*{{increase}} $185.6 billion (31 December 2017 est.)<ref name="CIAWFEZ">{{Cite CIA World Factbook|country=Czechia|access-date=24 April 2019}}</ref> [[List of countries by received FDI|35th]]
*{{increase}} Abroad: $54.39 billion (31 December 2017 est.)<ref name="CIAWFEZ"/>}}
| current account = {{increaseNegative}} -$678 million (2019 est.) [[List of countries by current account balance|130th]]<ref name="CIAWFEZ"/>
| gross external debt = {{decreasePositive}} $191.9 billion (2019 est.)<ref name="CIAWFEZ"/> [[List of countries by external debt|44th]]
| NIIP = −17 % of GDP (2020)<ref>{{cite web|url=http://ec.europa.eu/eurostat/statistics-explained/index.php/International_investment_position_statistics#EU-28_turned_from_a_net_borrower_to_a_net_lender_of_other_investment_in_2015|title=International investment position statistics – Statistics Explained|website=ec.europa.eu}}</ref>
| debt = {{plainlist|
*{{decreasePositive}} 30.8% of GDP (2019)<ref name="1st Notif">{{cite web |title=GDP, government deficit/surplus and debt in the EU (in national currencies) |url=https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |archive-url=https://ghostarchive.org/archive/20221010/https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |archive-date=2022-10-10 |url-status=live |website=ec.europa.eu |publisher=Eurostat |access-date=28 April 2020}}</ref>
*{{increaseNegative}} CZK 1.739 trillion (2019)<ref name="1st Notif"/>}}
| revenue = 42.1% of GDP (2019)<ref name="1st Notif"/>
| expenses = 41.9% of GDP (2019)<ref name="1st Notif"/>
| balance = {{plainlist|
*CZK 15.4 billion surplus (2019)<ref name="1st Notif"/>
*+0.3% of GDP (2019)<ref name="1st Notif"/>}}
| reserves = $151.69&nbsp; billion (January 2018 est.; [[List of countries by foreign-exchange reserves|17th]])<ref>{{cite web | url=https://www.cnb.cz/en/statistics/bop_stat/international_reserves/drs_struktura_en.htm | title=ČNB}}</ref>
| aid = {{plainlist|
*€26.7 billion from [[European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cs_en.pdf |title=European Cohesion Policy in the Czech Republic |date=n.d. |archive-url=https://web.archive.org/web/20190628050632/https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cs_en.pdf |archive-date=28 June 2019 |url-status=dead }}</ref>
*€24.2 billion from [[European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cz_en.pdf |title=European Structural and Investment Funds Czech Republic |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170131111018/http://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cz_en.pdf |archive-date=31 January 2017 |url-status=live }}</ref>}}
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title=Czech Republic's 'AA-/A-1+' Foreign Currency And 'AA/A-1+' Local Currency Ratings Affirmed; Outlook Stable |url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3070839 |website=S&P Global Ratings |publisher=S&P Global |access-date=6 May 2025}}</ref>
*AA (Domestic)
*AA- (Foreign)
*AA+ (T&C Assessment)
*Scope:<ref>{{cite web |title= Scope affirms the Czech Republic’s credit ratings at AA- with Stable Outlook |publisher=Scope Ratings |url=https://scoperatings.com/ratings-and-research/rating/EN/179298|access-date=19 September 2025}}</ref>
*AA-
*[[Fitch Ratings|Fitch]]:<ref>{{cite web |title=Czech Republic |url=https://www.fitchratings.com/entity/czech-republic-80442222 |website=www.fitchratings.com |publisher=FitchRatings |access-date=6 May 2025}}</ref>
*AA- (Long Term)
*AA- (Local Currency Long Term)
*AAA (Country Ceiling)
}}
| cianame = 
| spelling = 
}}
The '''economy of the Czech Republic''' is a [[IMF advanced economy list|developed]] [[Trading nation|export-oriented]] [[social market economy]] based in services, manufacturing, and innovation that maintains a [[World Bank high-income economy|high-income]] [[welfare state]] and  the [[European social model]].<ref name="An Ideal-Typical Perspective">Christian Aspalter, Kim Jinsoo, Park Sojeung. [http://onlinelibrary.wiley.com/doi/10.1111/j.1467-9515.2009.00654.x/abstract?systemMessage=Wiley+Online+Library+will+be+unavailable+on+Saturday+7th+Oct+from+03.00+EDT+%2F+08%3A00+BST+%2F+12%3A30+IST+%2F+15.00+SGT+to+08.00+EDT+%2F+13.00+BST+%2F+17%3A30+IST+%2F+20.00+SGT+and+Sunday+8th+Oct+from+03.00+EDT+%2F+08%3A00+BST+%2F+12%3A30+IST+%2F+15.00+SGT+to+06.00+EDT+%2F+11.00+BST+%2F+15%3A30+IST+%2F+18.00+SGT+for+essential+maintenance.+Apologies+for+the+inconvenience+caused+. Analysing the Welfare State in Poland, the Czech Republic, Hungary and Slovenia: An Ideal-Typical Perspective]. Published on 10 March 2009. [[Digital object identifier|DOI]]: 10.1111/j.1467-9515.2009.00654.x</ref> The [[Czech Republic]] participates in the [[European Single Market]] as a member of the [[European Union]], and is therefore a part of the [[economy of the European Union]]. It uses its own currency, the [[Czech koruna]], instead of the [[euro]]. It is a member of the [[Organisation for Economic Co-operation and Development]] (OECD). The Czech  Republic ranks 16th in [[List of countries by inequality-adjusted HDI|inequality-adjusted human development]] and 24th in [[World Bank Human Capital Index]], ahead of countries such as the [[United States]], the [[United Kingdom]] or [[France]]. In 2019 it was described by ''[[The Guardian]]'' as "one of Europe's most flourishing economies",<ref name=":1">Robert Tait. [https://www.theguardian.com/world/2019/jan/06/czech-democracy-threat-debt-crisis Czech democracy 'under threat' from rising debt crisis]. ''[[The Guardian]]''. 6 January 2019.</ref> but in 2023 as "sick man of Europe" by [[Die Welt]].<ref name=":2" />

The industry sector accounts for 37% of the economy, while services account for 61% and agriculture for 2%. The principal industries are [[high tech]] engineering, [[electronics]] and machine-building,<ref name="businessinfo.cz">[http://www.businessinfo.cz/en/about-the-czech-republic/economic-information/market-information-sectors-and-products.html Market Information: Sectors and Products]. {{Webarchive|url=https://web.archive.org/web/20170923145138/http://www.businessinfo.cz/en/about-the-czech-republic/economic-information/market-information-sectors-and-products.html |date=23 September 2017 }}. Businessinfo.cz</ref> steel production, transportation equipment (automotive, rail and [[Aerospace engineering|aerospace industry]]), [[chemistry|chemicals]], [[Materials science|advanced materials]] and [[pharmaceutical]]s. The major services are [[research and development]], [[Information and communications technology|ICT]] and [[software development]], [[nanotechnology]] and [[List of life sciences|life sciences]].<ref name="businessinfo.cz"/> Its main agricultural products are [[cereal]]s, [[vegetable oil]]s and [[hops]].

{{As of|2023|post=,}} the Czech [[GDP per capita]] at [[purchasing power parity]] is $50,961 and 698,706 [[Czech koruna|Czech crowns]] ($31,368) at [[Real versus nominal value (economics)|nominal value]].<ref name="IMFWEOCZ"/> {{As of|September 2021|post=,}} the [[unemployment]] rate in the Czech Republic was the lowest in the EU at 2.6%,<ref name="eurostat unemployment"/> and the poverty rate is the second lowest of OECD members, following [[Denmark]].<ref name="FT 19 October 2016"/> The Czech Republic ranks 21st in the [[Index of Economic Freedom]] (ranked behind [[Chile]]),<ref>{{cite web| url = https://www.heritage.org/index/ranking| archive-url = https://archive.today/20120628210034/http://www.heritage.org/index/ranking| url-status = unfit| archive-date = 28 June 2012| title = 2022 Index of Economic Freedom Country Rankings}}</ref> 30th in the [[Global Innovation Index]] (ranked behind [[UAE]]),<ref>{{Cite web|url=https://www.globalinnovationindex.org/gii-2016-report|archive-url = https://web.archive.org/web/20160923195312/https://www.globalinnovationindex.org/gii-2016-report|archive-date = 23 September 2016|title = Global Innovation Index &#124; Tracking Innovation through the COVID-19 Crisis}}</ref> 32nd in the [[Global Competitiveness Report]],<ref name="GCR 2018/19"/> 41st in the [[ease of doing business index]] and 25th in the [[Global Enabling Trade Report]] (ranked behind [[Canada]]).<ref>{{cite web | url=http://reports.weforum.org/global-enabling-trade-report-2016/enabling-trade-rankings/ | title=Enabling Trade rankings| work=Global Enabling Trade Report 2016}}</ref> The largest trading partner for both export and import is [[Germany]], followed by other [[Member state of the European Union|members of the EU]]. The Czech Republic has a highly diverse economy that ranks 7th in the 2019 [[Economic Complexity Index]].<ref name="Atlas of Economic Complexity">[https://atlas.media.mit.edu/en/rankings/country/eci/ Economic Complexity Rankings (ECI)] {{Webarchive|url=https://web.archive.org/web/20180314191933/https://atlas.media.mit.edu/en/rankings/country/eci/ |date=14 March 2018 }}. [[The Atlas of Economic Complexity]]. Retrieved 3 October 2017.</ref>

==History==
===From industrialisation to communism (1800-1989)===
{{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]].<ref>{{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}}</ref> 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 koruna|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.{{Citation needed|date=April 2025}} It is a widespread myth among Czechs that the [[First Czechoslovak Republic|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 [[First Austrian Republic|Austrian First Republic]].<ref>{{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}}</ref>

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.<ref>{{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}}</ref>

After the [[World War II]] and the [[1948 Czechoslovak coup d'état|Communist Coup d'état]] were all the economies of the [[Socialist state|socialist countries]] tightly linked to that of the [[Soviet Union]], in accordance with [[Stalinism|Stalin]]'s development policy of planned interdependence. [[Czechoslovakia]] was the most prosperous country in the [[Eastern Bloc]], however it was [[Economy of communist Czechoslovakia#Growth rates|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|thumb|[[Czech National Bank]] headquarters in Prague]]
[[File:VysokePece1.jpg|thumb|[[Heavy industry]] such as [[steelmaking]] is a traditional part of the Czech economy.]]
[[File:380 005 9 Praha.jpg|thumb|Transportation equipment, machinery manufacturing and engineering are essential for the Czech economy.]]

===1989–1995===
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 (economics)|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 [[Eastern bloc|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<ref>{{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}}</ref> – and the government has run consistent modest [[budget deficit]]s.{{Citation needed|date=December 2008}}

Two government priorities have been strict [[fiscal policy|fiscal policies]] and creating a good climate for incoming investment in the republic. Following a series of currency [[devaluation]]s, the [[Czech koruna|crown]] has remained stable in relation to the [[US dollar]].{{Citation needed|date=December 2008}} The Czech crown became fully [[convertibility|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. <!-- Which was not always successful, see the flop with Boeing vs Aero Vodochody. --> 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.

Czechia’s high export profile has made it tightly woven into both European and global markets and supply chains, which has contributed to its relatively low unemployment.<ref name="OECD17" /> A large part of the Czech industrial economy is tied to German demand, with 33% of its exported goods going to its neighbor to the northwest.<ref name="OECD19" /> Foreign direct investment in the 1990s from Germany, Austria, and the Netherlands helped build the country’s automotive industry and provided a strong base for the rest of the economy.<ref name="MFA" /> This foreign investment is further reflected in the fact that upwards of 38% of entire sectors of the Czech economy are owned by foreign-owned corporations.<ref name="Jurajda" /> The large stake of foreign ownership has created concerns over dependency on foreign entities and has left the Czech economy prone to shocks in foreign demand or global supply disruptions.<ref name="OECD22" /> This openness has supported growth but also increased vulnerability.

The country boasts a flourishing consumer production sector and has [[privatization|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]].<ref>{{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}}</ref>

===1995–2000===
[[File:Škoda Auto Mladá Boleslav.jpg|thumb|[[Škoda Auto]] 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.

===2000–2005===
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.

===2005–2010===
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%,<ref>{{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}}</ref> 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.<ref>{{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}}</ref>

===2010–2019===
[[File:Smartwings Hungary Boeing 737-800 HA-LKG.jpg|thumb|[[Smartwings]] 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".<ref>{{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}}</ref> 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.<ref>{{cite web|url=http://www.kurzy.cz/makroekonomika/sluzby/|title=Služby - vývoj tržeb ve službách v ČR, 2015|access-date=3 March 2015}}</ref> 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]].<ref>{{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}}</ref> On 29 May 2015, it was announced that growth of the Czech economy has increased from calculated 3,9% to 4,2%.<ref>{{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}}</ref>[[File:Praha Nusle Pikrtova 1a.jpg|thumb|[[Computer security|Cybersecurity software]] 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.<ref>{{cite document | doi=10.1787/888933224163 | title=Figure 1.9 Share of ICT sector in total value added, 2013 | publisher=[[OECD]] | date=29 May 2015}}</ref>]]
In August 2015, Czech [[GDP growth]] was 4.4%, making the Czech economy the highest growing in Europe.<ref>{{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 News|Bloomberg Business]]|access-date=14 August 2015}}</ref> On 9 November 2015, unemployment in the Czech Republic was at 5.9%, the lowest number since February 2009.<ref>{{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}}</ref> On the other hand, the economy suffers from dividends being paid to the [[Foreign ownership|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.<ref>"[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.</ref> In 2019 it was described by ''[[The Guardian]]'' as "one of Europe's most flourishing economies"<ref name=":1" />

=== 2020-present ===
The worldwide [[COVID-19 pandemic]] in the early 2020s as well as the European energy crisis caused by the [[Russian invasion of Ukraine|Russian full-scale invasion of Ukraine]] in 2022 hit the Czech economy hard. In 2023, the conservative German newspaper [[Die Welt]] called the Czech Republic "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 the Czech Republic being stuck in the [[Middle income trap|middle-income trap]],<ref name=":2">{{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}}</ref> although it is labelled as [[World Bank high-income economy|high-income country by the World Bank]] since 2006. 

==Adoption of Euro and EU funds==
{{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.<ref>{{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 }}</ref> There is no target date by the government for joining the [[ERM II]] or adopting the euro.<ref>{{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}}</ref>  [[First Cabinet of Andrej Babiš|The cabinet]] that was formed following the [[2017 Czech parliamentary election|2017 legislative election]] did not plan to proceed with euro adoption within its term,<ref>{{cite web |last1=Bukovský |first1=Jaroslav |title=Vstoupit do eurozóny? Až bude euro za dvacet korun, shodli se Babiš s Rusnokem |date=5 December 2017 |url=https://www.e15.cz/byznys/burzy-a-trhy/vstoupit-do-eurozony-az-bude-euro-za-dvacet-korun-shodli-se-babis-s-rusnokem-1340644}}</ref> and this policy was continued by [[Cabinet of Petr Fiala|the succeeding cabinet]] formed after the [[2021 Czech parliamentary election|2021 election]].<ref name="aktuálně.cz 2 November 2021">[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.</ref> However, by the start of 2024, President [[Petr Pavel]] called on the government to take concrete steps in adopting the euro.<ref>{{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}}</ref>

The Czech Republic also receives €24.2bn between 2014 and 2020 from the [[Regional policy of the European Union|European Structural and Investment Funds]],<ref name="2016 European Structural and Investment Funds: Country factsheet - Czech Republic">[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.</ref><ref>{{cite web | url=https://www.strukturalni-fondy.cz/en/Fondy-EU | title=DotaceEU - EU funds in the CZ}}</ref> 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.<ref>[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.</ref>

==Public policy==
[[File:Praha, Holešovice, Letná, Ministerstvo průmyslu a obchou.jpg|alt=|thumb|[[Ministry of Industry and Trade (Czech Republic)|Ministry of Industry and Trade]]]]
{{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 <ref>[https://vlada.gov.cz/en/jednani-vlady/policy-statement/policy-statement-of-the-government-193762/#public_finance]. ''[[Policy statement]]''. Retrieved 20 April 2024.</ref> 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<ref>[https://www.mpsv.cz/web/en]. ''[[Ministry of labor and social affairs]]''. Retrieved 20 April 2024.</ref> 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]].<ref name="FT 19 October 2016"/> The Czech healthcare system ranks 13th in the 2016 [[Euro health consumer index]].<ref>{{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}}</ref>

As of 2020,  the Czech Republic’s public policy has focused on modernizing governance, social resilience, and structural reform. In response to economic challenges, and the [[COVID-19]] pandemic, the government adopted a Fiscal-Structural Plan for 2025-2028, replacing the previous convergence programme to improve long-term budget, sustainability and align with the [[European Union|EU]] fiscal surveillance.

Public administration reform is guided by the “Client-oriented Public Administration 2030”  strategy, emphasizing digitalizations, citizen, participation, and better inter-governmental coordination. The Recovery and Resilience plan, supported by the EU, channels investments into education with a curriculum overhaul to emphasize digital skills, healthcare, infrastructure, and affordable housing.

On social policy, the government has pledged to support vulnerable populations while discouraging long-term dependence on welfare. Mental health reform has also merged as a priority, though progress has lagged, in 2023 only a fraction of intended community. Psychiatric centers were operational.

Additionally, the education policy strategy 2030, aims to modernized the school system, promote equal access, and skill for the digital age.

==Prague Stock Exchange==
[[File:Praha, Staré město, Burzovní palác.jpg|thumb|[[Prague Stock Exchange]]]]
The Czech economy also includes its capital market. In the case of the Czech Republic, it is the [[Prague Stock Exchange]] (PSE).<ref>{{Cite web|url=https://www.penize.cz/burza-cennych-papiru-praha|title=Prague Stock Exchange}}</ref> (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<ref>{{Cite web|url=https://www.pse.cz/obchodovani/trhy/prime-market|title=Prime Market}}</ref> - 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<ref>{{Cite web|url=https://www.pse.cz/obchodovani/trhy/standard-market|title=Standard Market}}</ref> - 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<ref>{{Cite web|url=https://www.pse.cz/obchodovani/trhy/free-market|title=Free Market}}</ref> - 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<ref>{{Cite web|url=https://www.pse.cz/obchodovani/trhy/start-market|title=START Market}}</ref> - 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.<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0005112300|title=ČEZ}}</ref> 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,<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0008019106|title=Komerční banka}}</ref> MONETA Money Bank<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0008040318|title=MONETA Money Bank}}</ref> and the dual listing of the Austrian company Erste Group Bank,<ref>{{Cite web|url=https://www.pse.cz/detail/AT0000652011|title=Erste Group Bank}}</ref> under which the local bank Česká spořitelna<ref>{{Cite web|url=https://www.csas.cz/cs/o-nas/kdo-jsme|title=Erste Group Bank}}</ref> falls; as well as Colt CZ Group<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0009008942|title=Colt CZ Group}}</ref> 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<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0009011920|title=Bezvavlasy}}</ref> and Pilulka Lékárny,<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0009009874|title=Pilulka Lékárny}}</ref> leather manufacturer and processor KARO Leather<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0009008819|title=KARO Leather}}</ref> or urban furniture manufacturer mmcité.<ref>{{Cite web|url=https://www.pse.cz/detail/CZ0005138826|title=mmcité}}</ref>

==Energy==
{{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.<ref name=":0">{{cite web |title=Energy in the Czech Republic |date=8 September 2023 |url=https://www.trade.gov/country-commercial-guides/czech-republic-energy |publisher=International trade administration}}{{source attribution}}</ref>

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. <ref name=":0" />

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.  <ref name=":0" />

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.<ref name=":0" /><ref>{{cite web |title=Energy |url=https://www.mpo.cz/en/energy/ |publisher=Ministry of industry and trade}}</ref><ref>{{cite web |url=https://sujb.gov.cz/en/ |publisher=State office for nuclear safety|title=Nuclear safety }}</ref>

==Statistical indicators==
[[File:GDP per capita development of Czechia.svg |thumb|right|Real GPD per capita development the Czech Republic 1970 to 2018]]
[[File:Rust ceskeho HDP 97-19.jpg|thumb|Percentage of GDP growth in the Czech Republic 1997–2019]]
[[File:Notation financière des Etats européens par Standard & Poor's.svg|thumb|[[Credit rating]]s by [[Standard & Poor's]]]]
[[File:Měsíční průměrná mzda v ČR (1990-2015).jpg|thumb|Average gross wage in the Czech Republic (1990–2015)]]
[[File:EU by GNI per capita PPP current international.jpg|thumb|[[List of countries by GNI (PPP) per capita|EU by GNI per capita, PPP]] (current international $). World Bank 2016]]

===Development of main indicators===
The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green.<ref>{{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}}</ref>
{| class="wikitable" style="text-align:center;"
|-
!Year
!GDP<br /><small>(in Bil. US$ PPP)</small>
!GDP per capita<br /><small>(in US$ PPP)</small>
!GDP 
<small>(in Bil. US$ nominal)</small>
!GDP growth<br /><small>(real)</small>
!Inflation rate<br /><small>(in Percent)</small>
!Unemployment <br /><small>(in Percent)</small>
!Government debt<br /><small>(in % of GDP)</small>
|-
|2015
|{{Increase}}340.6
|{{Increase}}32,318
|{{Increase}}209.1
|{{Increase}}5.3 %
|{{Increase}}0.3 %
|{{decreasePositive}}5.0 %
|{{decreasePositive}}40.0 %
|-
|2016
|{{Increase}}353.9
|{{Increase}}33,529
|{{Increase}}229.6
|{{Increase}}2.6 %
|{{Increase}}0.7 %
|{{decreasePositive}}3.9 %
|{{decreasePositive}}36.8 %
|-
|2017
|{{Increase}}375.7
|{{Increase}}35,512
|{{Decrease}}208.9
|{{Increase}}4.3 %
|{{increaseNegative}}2.4 %
|{{decreasePositive}}2.9 %
|{{decreasePositive}}34.7 %
|-
|2018
|{{Increase}}397.7
|{{Increase}}37,547
|{{Increase}}211.7
|{{Increase}}3.5 %
|{{increaseNegative}}2.3 %
|{{increaseNegative}}3.0 %
|{{decreasePositive}}32.9 %
|-
|2019
|{{Increase}}418.7
|{{Increase}}39,478
|{{Decrease}}209.4
|{{Increase}}3.0 %
|{{Increase}}2.0 %
|{{increaseNegative}}3.2 %
|{{decreasePositive}}31.3 %
|-
|2020
|{{Increase}}437.7
|{{Increase}}41,220
|{{Decrease}}188.0
|{{Increase}}2.5 %
|{{Increase}}2.0 %
|{{increaseNegative}}3.4 %
|{{decreasePositive}}29.4 %
|}

===Background===
''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)<ref>[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.</ref>

'''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)

===Trade and finance===
{{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),<ref name="Economy of the Czech Republic">{{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}}</ref> 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)<ref name="Economy of the Czech Republic"/>

===IT and Telecommunications===
'''Households with access to fixed and mobile telephone access'''<ref name="ceeitandtelecom.com">[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 }}</ref>
* ''landline telephone'' – 25% (2009)
** according to the Czech Statistical Office:<ref name="czso.cz">{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E002419AC/$File/0001132115.xls | title=Obsah nenalezen &#124; ČSÚ}}</ref> 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:<ref name="czso.cz"/> 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:<ref>{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E0024189E/$File/0001132118.xls | title=Obsah nenalezen &#124; ČSÚ}}</ref> 75,8% (2005); 90,6% (2009); 93,9% (2011); 96,0% (2012); 96,0% (2013)

'''Broadband penetration rate'''<ref name="ceeitandtelecom.com"/>
* ''fixed broadband'' – 19.1% (2010)
* ''mobile broadband'' – 3.5% (2010)

'''Individuals using computer and internet'''<ref name="ceeitandtelecom.com"/>
* ''computer'' – 67% (2009)
**according to the Czech Statistical Office:<ref>{{cite web | url=http://www.czso.cz/csu/2013edicniplan.nsf/t/0E0024193D/$File/0001132119.xls | title=Obsah nenalezen &#124; ČSÚ}}</ref> 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:<ref>{{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| access-date=25 April 2021| archive-date=25 April 2021| archive-url=https://web.archive.org/web/20210425143641/https://www.czso.cz/documents/10180/122362696/06100520_c.pdf/9a9a97ce-e0c6-42dc-b6ef-b4f66c19b98c?version=1.1| url-status=dead}}Page 4, Table C2</ref> 32,1% (2005); 55,9% (2009); 61,8% (2010); 65,5% (2011); 69,5% (2012); 70,4% (2013)

===Companies===
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.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/czech%20republic | title=Industry Breakdown of Companies in Czech Republic | website=HitHorizons}}</ref>

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

=== Society and quality of life===
[[File:Index of Economic Freedom 2018.png|thumb|400px|upright=2|[[Index of Economic Freedom]] 2018]]
* 32nd in [[List of countries by Human Development Index|Human Development Index]] (2022)
* 18th in [[List of countries by inequality-adjusted HDI|inequality-adjusted Human Development Index]] (2022)
* 6th in [[Henley Passport Index]] (2024)<ref>{{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}}</ref>
* 24th in [[Human Capital Index]] (2018)<ref>[http://documents.worldbank.org/curated/en/816281518818814423/pdf/2019-WDR-Report.pdf WORLD DEVELOPMENT REPORT 2019]. [[The World Bank]].</ref>
* 16th in [[Quality of Nationality Index]] ([[Henley & Partners]], 2018)
* 27th in [[Legatum Prosperity Index]] (2019)
* 22nd in [[Social Progress Index]] (2019)

=== Macroeconomics ===
* 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)<ref>{{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}}</ref>
* 21st in [[Index of Economic Freedom]] (2018)

==See also==
{{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]]

==Resources==
* ''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 [[German occupation of Czechoslovakia|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.&nbsp;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

==References==
{{Reflist|35em|refs=
<!--unused<ref name="Eurostat Unemployment 2016">[http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Unemployment_rates,_seasonally_adjusted,_September_2016.png Unemployment rates, seasonally adjusted, September 2016]. [[Eurostat]].</ref>-->

<ref name="FT 19 October 2016">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.</ref>

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

<ref name="GCR 2018/19">{{cite web|url=http://reports.weforum.org/global-competitiveness-report-2018/|title=The Global Competitiveness Report 2018|access-date=17 October 2018}}</ref>

<ref name="OECD17">OECD. ''OECD Economic Surveys: Czechia 2025''. OECD Publishing, 2025, p. 17. https://doi.org/10.1787/7a70af5c-en.</ref>

<ref name="OECD19">OECD. ''OECD Economic Surveys: Czechia 2025''. OECD Publishing, 2025, p. 19. https://doi.org/10.1787/7a70af5c-en.</ref>

<ref name="MFA">Ministry of Foreign Affairs of the Czech Republic. “Economy – Czechia.” ''Czechia.eu'', https://www.czechia.eu/economy/. Accessed 2 Nov. 2025.</ref>

<ref name="Jurajda">Jurajda, Štěpán, and Juraj Stančík. “Foreign Ownership and Firm Performance: Evidence from Czech Manufacturing.” ''Economics of Transition and Institutional Change'', vol. 23, no. 2, 2015, p. 314.</ref>

<ref name="OECD22">OECD. ''OECD Economic Surveys: Czechia 2025''. OECD Publishing, 2025, p. 22. https://doi.org/10.1787/7a70af5c-en.</ref>

}}

==External links==
* [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] {{Webarchive|url=https://web.archive.org/web/20190710093419/http://eng.kurzy.cz/cnb/ |date=10 July 2019 }} 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]

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[[Category:Economy of the Czech Republic| ]]
[[Category:European Union member economies|Czech Republic]]
[[Category:OECD member economies|Czech Republic]]
[[Category:Economies of Europe by country|Czech Republic]]