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Czech Economy – development and macroeconomic indicators

Foundation stones of the Czech economy are long industrial tradition and high qualified workforce. Czech economy is liberal and external trade is of vital importance. The main trade partners of the Czech Republic are EU member-states absorbing 80% of total exports of the country.

Foundation stones of the Czech economy are long industrial tradition and high qualified workforce. Industrialization in the 19th century made Czech lands the most developed region of the Austro-Hungarian Empire. Exports of Czech breweries and sugar industries strengthened the economic transactions of the Czech Republic, which already expanded beyond European borders. Due to the development of textile sector and, mainly, heavy industry, which still represents one of the pillars of the Czech economy, the Republic was among the most developed countries worldwide after the establishment of Czechoslovakia. After the end of World War II ex - Czechochoslovakia became a member of the Soviet Union block with a forty-year period of totalitarian regime, which influenced the structure and effectiveness of its economy since it was forced to concentrate on heavy industry based on high consumption of imported raw materials. Even then, Czechoslovakia represented the industrial foundation of the Eastern block.

With the fall of the communist regime in 1989, a three-year period of structural economic reforms started. The Government liberalized prices, an important part of economy went to private sector and the country opened its gates to foreign markets. The reforms resulted to the decrease or closing of companies without prospects as well as to the development of new sectors and services. On 1st May 2004 the Czech Republic accessed the European Union.

Czech economy is liberal and external trade is of vital importance. Traditionally, industry plays the main role. The share of industry in external trade is around 80%. The role of small- and middle-sized companies employing more than 60% of staff has increased.

The main trade partners of the Czech Republic are EU member- states absorbing 80% of total exports of the country. Trade balance of the Czech Republic is, for long period now, positive. In future the Czech Republic will strengthen its position in European and international markets because of balanced relation among price and quality of its products and services. The country aims at successful facing of competitive pressures in and outside the European Union with the development of innovative and new technologies. For foreign investors the Czech Republic is, per capita, the most attractive destination of Central and Eastern Europe.

During the last years more and more Czech companies took leading places on international markets meeting the high demand for quality, reliable delivery, quantity and quality production process. In the European Union, besides their strong position as contractors, the Czech companies are also final providers of products and services, while cooperation in production is of vital importance.

For more information about the Czech economy visit the website of Czech Statistical Office.