Czech Republic

Czech Republic

Amey Gurjar
Amey Gurjar

Country Expert

Czech Republic Statistics

The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation, that maintains a high-income welfare state and the European social model. 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, but uses its own currency, the Czech koruna, instead of the euro. It is a member of the OECD.
The Czech Republic ranks 13th in inequality-adjusted human development and 14th in World Bank Human Capital Index ahead of countries such as the United States, the United Kingdom or France. It was described by The Guardian as “one of Europe’s most flourishing economies”.
$ 1 crores
1 crores
Population (2019)
Area ( km. sq. )
Import Of Czech Republic

In 2018 Czech Republic imported a total of $180B, making it the number 28th trade destination in the world.
Main Import Countries

Export Of Czech Republic

In 2018 Czech Republic exported a total of $200B, making it the number 27th exporter in the world.
Main Export Countries

Major Sectors

Manufacturing Service Agriculture Energy Tourism

The manufacturing industry is the main pillar of the Czech’s economy. There is great output from high-tech engineering, machine engineering, and automotive engineering. The Czech Republic is the 12th largest global car exporter and has employed over 150,000 people. Statistics reveal that in the year 2010, 54.2% of the products of the automotive industry were exported to Germany, Poland, and Slovakia. One of the largest and most significant products is Skoda Auto which is over 100 years old in automotive history. Skoda Auto, a Korean-based car manufacturer, had a successful year in 2007 when it managed to deliver a total of 630,032 vehicles. The cars manufactured that year were a record 14.6% more than the previous year. By the end of the year 2008, Skoda had employed 29,312 people both in the parent and subsidiary companies. Alongside Skoda Auto owned by the Volkswagen group, the other private-owned automobile manufacturer is Hyundai Motor Company. Hyundai has invested in an excess of 1 billion Euros and produces not less than 300,000 cars annually. About 3,500 jobs have also been created by this company. Other popular automotive manufacturers include Tatra trucks (which manufactures heavy-duty vehicles), Iveco Bus, SOB Libchavy, Toyota, Peugeot, and Citroen.

Approximately 60% of the employees in the Czech Republic work in the service sector just close to the European average of 75%. This percentage of employed persons qualifies a country to be called highly developed. With the increase in competition in the automotive industry from countries like Japan, Germany, and Mexico, the service sector has risen to be among the most productive industry in the Czech Republic. The focus in the services sector is on research and development, ICT and software development, nanotechnology, real estates, consultancy, business (such as finance), and life sciences.

Agriculture contributes dismally to the economy of the Czech Republic at about 3.9%. However, the country has prioritized agriculture by categorizing it as one of the key areas in the national economy. This strategy aims at increasing agricultural production to ensure food security. The ever-increasing demand for safe and nutritious food has presented an opportunity for this sector to thrive by producing even more to feed her growing population. The agricultural sector also focuses on sustainable methods of agriculture. In most cases, farming is practiced on the farms occupying about 800 hectares of land. Towards the end of 2007, 53.9% of the total land had already been put under crop cultivation. Crops such as winter wheat, spring barley, winter rape, grains, vegetable oils, hops, potatoes are cultivated on Czech Republic farms with some forming part of the agricultural exports. The European Union has provided financial support for the agricultural sector in the country through a joint partnership program established in the year 2004. The alliance resulted in increased income in the agricultural sector. In the year 2010, a total of 6.2 billion Czech korunas was earned. Despite all these efforts, it’s unfortunate that the total volume of the agricultural output is still low judging by the country’s steady loss of food security. Import of cheap agricultural products, a decrease in employment in agriculture, and relatively low salaries are some of the factors that have affected the development of agriculture in the Czech Republic.

The Czech Republic is a long-term net-exporter of electricity. 97% -98% of oil used in the Czech Republic is imported. The government's 2015 energy policy designates nuclear power as main source of energy and its share is projected to rise to between 46% and 58% by 2040. Coal-powered energy is planned to fall to 21%, while renewables would rise to 25% and gas range from 5 to 15%. The updated energy strategy of 2019 envisions a gradual phase out of coal power share in total electricity generation from 2015's 46.2% down to 15.5% by 2040. The strategy sees nuclear energy as a non-carbon source of energy to be used during a slow transition to renewables in order to minimize the use of carbon-emitting fossil fuels that cause climate change. The increase in the share of nuclear, renewables and natural gas is to fill in the energy demand created by the impending gradual shutdowns of coal power stations. This 2015-approved energy strategy expects construction of an additional nuclear reactor in the Temelín Nuclear Power Station and another one in the Dukovany Nuclear Power Station with the possibility of further expansion to two reactors in each power station. The older station of the two, Dukovany, is to be expanded before Temelín. As of 2019, the financing models and contractor selection for the planned reactors are being negotiated by the government.

The Czech Republic has become one of the major tourist destinations in Europe, receiving over 20 million visitors yearly. The capital, Prague, is the most popular destination, by itself receiving over 8 million visitors annually out of which almost 7 million are foreign. Other highly visited destinations include Karlštejn Castle, Kutná Hora, Brno, Český Krumlov, České Budějovice, Olomouc and the Lednice–Valtice Cultural Landscape. Prague attracts large numbers of foreign tourists, mostly from Germany, Russia, Poland, the United States, Israel and the United Kingdom.

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Latest News

Trade Fair Exhibition

construction sector

Date : 23-08 Aug 2020.
Place : Louny, Czech Republic.

STYL – International Fashion Fair

Date : 24-08 Aug 2020.
Place : Brno, Czech Republic.