Czech Republic Economy
One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-2001 was led by exports to the European Union, especially Germany, and foreign investment, while domestic demand is reviving. The rate of corruption remains one of the highest among OECD countries.
Uncomfortably high fiscal deficit is becoming a problem.
Moves to complete banking, telecommunications, and energy privatization will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
The country is scheduled to fully implement the Schengen Agreement and therefore abolish the border controls with all of its neighbors (Germany, Austria, Poland, Slovakia) as of 31 December 2007.
The Czech government has expressed a desire to adopt the euro currency in 2010, but its introduction is only in the early planning stages and there are growing doubts whether budget deficit will not force postponement. More likely dates are 2011 or 2012.
Uncomfortably high fiscal deficit is becoming a problem.
Moves to complete banking, telecommunications, and energy privatization will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.
The country is scheduled to fully implement the Schengen Agreement and therefore abolish the border controls with all of its neighbors (Germany, Austria, Poland, Slovakia) as of 31 December 2007.
The Czech government has expressed a desire to adopt the euro currency in 2010, but its introduction is only in the early planning stages and there are growing doubts whether budget deficit will not force postponement. More likely dates are 2011 or 2012.
Info from - http://en.wikipedia.org/wiki/Czech_Republic
