Despite the division of the former CSFR on January 1, 1993 into the independent Czech Republic and Slovak Republic, the introduction of a new Czech currency, tax reform and foreign trade balance deficit the Czech Republic has continued its satisfactory macro-economic development:

  • Real GDP grew 2.6% in 1994, 4.8% in 1995 and 4.4% in 1996.
  • Privatisation is essentially complete with over 80% of former state property transferred to private ownership or the National Property Fund. Some large scale privatisation projects remain, including the state shares in Czech banks, Czech rail service, certain health care facilities and postal service. Remaining shares in privatized companies held by the National Property Fund are to be sold off in 1997.
  • The average annual 1993 inflation rate of 20.8% reflected the price jump of 8.5% in January 1993 following introduction of the new VAT. The average inflation in 1994 was 10% and 9.1% in 1995. The average inflation in 1996 was 8,8%. Current data - May 1997 - 8.0%, a little increasing is expected.
  • Inevitably, real output initially fell due to the loss of trade with former Comecon markets. After more than six years of reform, however, there are now clear signs of recovery. Retail sales increased 11,4% in 1996, the construction sector recorded 4.8% growth and industrial production rose by 6.8%.
  • Unemployment, averaging 3.2% in 1994 and 2.9 % in 1995. For 1996 the unemployment rate was 3.5%. 

Financial and economic data            1995          1996
GDP current (USD in bn)                42.8          43.7
GDP - Value (CZK in bn,
      constant prices of 1984)      1,137.0       1,186.6
GDP, % change from 1 year ago           4.8           4.4
Industrial production, 
    % change from 1 year ago            9.2           6.8
Construction output, 
    % change from 1 year ago            8.6           4.8

Inflation Rate  (yearly)                9.1           8.8
Unemployment Rate (%)                   2.9           3.5
Number of unemployed (thousands)      153.0         186.3
State budget balance (USD in mil)     271.2         -60.0
Exports (USD in mil.)                17,054        21,918
Imports (USD in mil.)                20,877        27,824
Trade balance (USD in mil.)          -3,823        -5,906
Retail sales  (increase in % )  1)      4.8          11.8

Average wage    Nominal (%)  2)        17.5          18.0
Average wage     Real (%) 2)            7.7           8.5
Average monthly wage (gross) USD        307           356
Balance of payments     
  - Current account (USD in mil.)  -1,362.3      -4,475.8
  - Capital  account (USD in mil)   8,225.9       4,071.7
Gross foreign reserves (USD in bn)     17.0          16.1
Gross foreign debt (USD in bn)         16.5          20.4

Consumer Prices, 
     % change from 1 year ago           9.1           8.8
Industrial Prices,  
     % change from 1 year ago           7.6           4.8
Discount rate (%)                       9.5          10.5
Lombard rate (%)                       12.5          14.0
Exchange rate 
       (period average) per USD       26.55          27.14

1) Percentage increase, previous year comparable prices
2) Increase in % to the same period of the previous year

Source: Czech National Bank
Czech Statistical Office

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