GDP (US$ Billion)
World Ranking 48/191
GDP Per Capita (US$)
World Ranking 41/190
(in terms of GDP composition, 2017)
External Trade (% of GDP)
Currency (Period Average)
23.38 per US$ (2017)
Unitary multiparty republic
Maintaining an open investment climate has been a key element of the Czech Republic's transition to a functioning market economy. As a member of the European Union (EU), with an advantageous location in the centre of Europe, a relatively low-cost structure, and a well-qualified labour force, the Czech Republic is an attractive destination for foreign investment. Real GDP growth in the Czech Republic peaked in 2017, but will remain solid over the coming years and outperform the wider EU. However, in the absence of strong productivity gains, the country's tight labour market will put upward pressure on unit labour costs and begin to weigh on the country's competitiveness.
Source: Fitch Solutions
Major Economic/Political Events and Upcoming Elections
The Social Democrats won the most votes in the parliamentary elections, but not enough to govern without forming a coalition.
The Social Democrats reached a coalition deal with the ANO 2011 movement and the Christian Democrats. Social Democrat Bohuslave Sobotka took office as the prime minister.
Legislative elections were held. The ANO 2011 party won 78 out of 200 available seats.
Presidential elections held over two rounds and Miloš Zeman was elected for a second term.
Andrej Babiš was reappointed as the prime minister.
A coalition government was formed.
The railway infrastructure authority in the Czech Republic started building civil structures for the construction of the Prague-Zahradní Město and the Praha-Eden stations in the 10th Prague district. The stations will be built as part of a project to construct a four-rail track that is proposed to have a line speed of 120km/h. The project entails an overall cost of CZK4.4 billion, of which CZK3 billion is funded by the EU.
The European Commission, under the EU Cohesion Policy, will invest EUR4.0 billion in 25 infrastructure projects, worth EUR8 billion, in 10 member states. The Czech Republic's allocation includes EUR76 million for upgrading the Prague-Pilsen rail corridor.
Sources: BBC Country Profile – Timeline, National sources, Fitch Solutions