Czech Republic

D

Tourism

Tourism has recently become a major source of trade and employment in the Czech Republic, as the republic’s ski resorts, spas, and Baroque architecture are a strong draw; this area of the Czech economy is growing after the fall of Communism. Prague, which suffered little of the war damage endured by neighbouring capitals such as Warsaw, has become a favourite with tourists and expatriates. Around 6.34 million tourists visited the country in 2005, bringing around US$2,412 million in tourist revenues, or 4.5 per cent of gross domestic product (GDP).

E

Energy

Most of the Czech Republic’s native energy production comes from thermal stations using national coal reserves, despite the high pollution penalty; in the early 1990s over 75 per cent of electricity was produced by such plants. Use of nuclear and hydroelectric power is increasing. In 1993 electrical output was 58.9 billion kWh.

F

Currency and Banking

The monetary unit of the Czech Republic is the Czech koruna of 100 haler (21.42 koruna equalled US$1; early 2007). The koruna derives from the breakup of Czechoslovakia at the end of 1992; both the Czech Republic and Slovakia had undertaken to maintain a common currency called the koruna (Czech, “crown”), but from February 8, 1993, each state began using different currencies. Both started out equal in value; the Slovak koruna was devalued later that year. Separation of the currencies one month after the two republics officially separated reflected ongoing tensions.

The central bank and issuing authority is the Czech National Bank (Česká Národní Banka). Private banks have operated since 1991, often on a regional basis, and by 1995 there were some 59 banks in the country. Prague is developing as a centre for financial and business services.

G

Commerce and Trade

Prior to 1989 most Czech trade was with the Union of Soviet Socialist Republics and other Communist neighbours, but the Czech Republic has adjusted rapidly to subsequent changes. Major trading partners are now the countries of the European Union, especially Germany, and Austria, Poland, and Russia. In 2003 it was estimated that imports totalled US$51,239 million and exports US$48,720 million. Major imports include oil, machinery, and telecommunications equipment; major exports are coal, machinery, motor vehicles, rolling stock, footwear, and basic manufactures such as iron and steel. Czech lager beer, traditionally brewed round the historic brewing town of Plzeň, is now an important export commodity.

H

Labour

The total active labour force in the Czech Republic numbers about 5.20 million (2005 estimate). Unemployment remains low, holding at 8.3 per cent in 2004.