Economy of the Czech Republic

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Economy of Czech Republic
BB Centrum, Prague, Czech Republic.jpg
Business district in Prague
Currency Czech koruna (CZK)
Calendar year
Trade organisations
 EU, WTO (via EU membership) and OECD
Country group
Statistics
PopulationIncrease2.svg 10,900,555 (31 December 2023) [4]
GDP
  • Increase2.svg $343 billion (nominal, 2024) [5]
  • Increase2.svg $620 billion (PPP, 2024) [5]
GDP rank
GDP growth
  • 2.3% (2022)
  • 0.2% (2023)
  • 0.7% (2024) [5]
GDP per capita
  • Increase2.svg $31,366 (nominal, 2024) [5]
  • Increase2.svg $56,686 (PPP, 2024) [5]
GDP per capita rank
GDP by sector
2% (2024) [5]
2.25% (since 6 February 2020) [6]
Population below poverty line
  • 9.5% (2023) [7]
  • Decrease Positive.svg 19% at risk of poverty or social exclusion (2023) [8]
Steady2.svg 24.0 low (2019) [9]
Decrease2.svg 56 out of 100 points (2023) [11] (44th)
Labour force
  • Decrease2.svg 5,378,192 (2020) [12]
  • Increase2.svg 81.7% employment rate (2023) [13]
Labour force by occupation
Unemployment
  • Increase Negative.svg 2.6% (September 2021) [15]
  • Increase Negative.svg 8.9% youth unemployment (15 to 24 year-olds; July 2020) [16]
Average gross salary
 CZK 43,967 / €1,755 monthly (2024) [17]
CZK 34,836 / €1,390 monthly (2024) [18]
Main industries
  • Engineering
  • electronics
  • motor vehicles
  • metallurgy
  • machinery
  • chemicals
  • pharmaceuticals
External
Exports$161.2 billion (2016) [19]
Export goods
  • Machinery
  • precision engineering equipment
  • transport equipment
  • electronics
  • pharmaceuticals
  • medical equipment
Main export partners
Imports$140.3 billion (2016) [19]
Import goods
  • Machinery components
  • raw materials and fuels
  • chemicals
Main import partners
FDI stock
  • Increase2.svg $185.6 billion (31 December 2017 est.) [24] 35th
  • Increase2.svg Abroad: $54.39 billion (31 December 2017 est.) [24]
Increase Negative.svg -$678 million (2019 est.) 130th [24]
Decrease Positive.svg $191.9 billion (2019 est.) [24] 44th
−17 % of GDP (2020) [25]
Public finances
  • Decrease Positive.svg 30.8% of GDP (2019) [26]
  • Increase Negative.svg CZK 1.739 trillion (2019) [26]
  • CZK 15.4 billion surplus (2019) [26]
  • +0.3% of GDP (2019) [26]
Revenues42.1% of GDP (2019) [26]
Expenses41.9% of GDP (2019) [26]
Economic aid
$151.69  billion (January 2018 est.; 17th) [31]
All values, unless otherwise stated, are in US dollars.

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. [32] 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. It uses its own currency, the Czech koruna, instead of the euro. It is a member of the Organisation for Economic Co-operation and Development (OECD). The Czech Republic ranks 16th in inequality-adjusted human development and 24th 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". [33]

Contents

The industry sector accounts for 37% of the economy, while services account for 61% and agriculture for 2%. The principal industries are high tech engineering, electronics and machine-building, [34] steel production, transportation equipment (automotive, rail and aerospace industry), chemicals, advanced materials and pharmaceuticals. The major services are research and development, ICT and software development, nanotechnology and life sciences. [34] Its main agricultural products are cereals, vegetable oils and hops.

As of 2023, the Czech GDP per capita at purchasing power parity is $50,961 and 698,706 Czech crowns ($31,368) at nominal value. [5] As of September 2021, the unemployment rate in the Czech Republic was the lowest in the EU at 2.6%, [35] and the poverty rate is the second lowest of OECD members, following Denmark. [36] The Czech Republic ranks 21st in the Index of Economic Freedom (ranked behind Chile), [37] 30th in the Global Innovation Index (ranked behind UAE), [38] 32nd in the Global Competitiveness Report, [39] 41st in the ease of doing business index and 25th in the Global Enabling Trade Report (ranked behind Canada). [40] The largest trading partner for both export and import is Germany, followed by other members of the EU. The Czech Republic has a highly diverse economy that ranks 7th in the 2019 Economic Complexity Index. [41]

History

From industrialisation to communism (1800-1989)

The Czech lands were among the first industrialized countries in continental Europe during the German Confederation era. The Czech industrial tradition dates back to the 19th century, when the Lands of the Bohemian Crown were the economic and industrial heartland of the Austrian Empire and later the Austrian side of Austria-Hungary. The Czech lands produced a majority (about 70%) of all industrial goods in the Empire, some of which were almost monopolistic. The Czechoslovak crown was introduced in April 1919. Introduced at a 1:1 ratio to the Austro-Hungarian currency, it became one of the most stable currencies in Europe. It is only a widespread myth among Czechs that the First Republic belonged to the 10 most developed economies of the world. Yet the Czech part (without Slovakia interwar and Transcarpathia) had a similar GDP in the 1920s to Germany and Belgium, which was higher than that of the crisis-struck Austrian First Republic. [42]

The consequences of the 1938 Munich Agreement and subsequent occupation were disastrous for the economy. After the occupation and forced subordination of the economy to German economic interests, the crown was officially pegged to the mark at a ratio of 1:10, even though the unofficial exchange rate was 1 to 6-7 and Germans immediately started buying Czech goods in large quantities. [43]

In accordance with Stalin's development policy of planned interdependence, all the economies of the socialist countries were tightly linked to that of the Soviet Union. Czechoslovakia was the most prosperous country in the Eastern Bloc, however it continued to lag further behind the rest of the developed world. With the disintegration of the communist economic alliance in 1991, Czech manufacturers lost their traditional markets among former communist countries in the east.

Today, this heritage is both an asset and a liability. The Czech Republic has a well-educated population and a densely developed infrastructure. [44]

Czech National Bank headquarters in Prague Nove Mesto, Na prikope 28, Ceska narodni banka.jpg
Czech National Bank headquarters in Prague
Heavy industry such as steelmaking is a traditional part of the Czech economy. VysokePece1.jpg
Heavy industry such as steelmaking is a traditional part of the Czech economy.
Transportation equipment, machinery manufacturing and engineering are essential for the Czech economy. 380 005 9 Praha.jpg
Transportation equipment, machinery manufacturing and engineering are essential for the Czech economy.

1989–1995

The "Velvet Revolution" in 1989, offered a chance for profound and sustained political and economic reform. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labelled the "big bang" of January 1991. Since then, consistent liberalization and astute economic management has led to the removal of 95% of all price controls, low unemployment, a positive balance of payments position, a stable exchange rate, a shift of exports from former communist economic bloc markets to Western Europe, and relatively low foreign debt. Inflation has been higher than in some other countries – mostly in the 10% range [45] – and the government has run consistent modest budget deficits.[ citation needed ]

Two government priorities have been strict fiscal policies and creating a good climate for incoming investment in the republic. Following a series of currency devaluations, the crown has remained stable in relation to the US dollar.[ citation needed ] The Czech crown became fully convertible for most business purposes in late 1995.

In order to stimulate the economy and attract foreign partners, the government has revamped the legal and administrative structure governing investment. With the breakup of the Soviet Union, the country, till that point highly dependent on exports to the USSR, had to make a radical shift in economic outlook: away from the East, and towards the West. This necessitated the restructuring of existing banking and telecommunications facilities, as well as adjusting commercial laws and practices to fit Western standards. Further minimizing reliance on a single major partner, successive Czech governments have welcomed U.S. investment (amongst others) as a counterbalance to the strong economic influence of Western European partners, especially of their powerful neighbour, Germany. Although foreign direct investment (FDI) runs in uneven cycles, with a 12.9% share of total FDI between 1990 and March 1998, the U.S. was the third-largest foreign investor in the Czech economy, behind Germany and the Netherlands.

The country boasts a flourishing consumer production sector and has privatized most state-owned heavy industries through the voucher privatization system. Under the system, every citizen was given the opportunity to buy, for a moderate price, a book of vouchers that represents potential shares in any state-owned company. The voucher holders could then invest their vouchers, increasing the capital base of the chosen company, and creating a nation of citizen share-holders. This is in contrast to Russian privatization, which consisted of sales of communal assets to private companies rather than share-transfer to citizens. The effect of this policy has been dramatic. Under communism, state ownership of businesses was estimated to be 97%.[ citation needed ] Privatization through restitution of real estate to the former owners was largely completed in 1992. By 1998, more than 80% of enterprises were in private hands. Now completed,[ citation needed ] the program has made Czechs, who own shares of each of the Czech companies, one of the highest per-capita share owners in the world.[ citation needed ]

1995–2000

Skoda Auto is the largest automobile manufacturer in the Czech Republic. Skoda Auto Mlada Boleslav.jpg
Škoda Auto is the largest automobile manufacturer in the Czech Republic.

The country's economic transformation was far from complete. Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles, which culminated in a currency crisis in May. The formerly pegged currency was forced into a floating system as investors sold their Korunas faster than the government could buy them. This followed a worldwide trend to divest from developing countries that year. Investors also worried the republic's economic transformation was far from complete. Another complicating factor was the current account deficit, which reached nearly 8% of GDP.

In response to the crisis, two austerity packages were introduced later in the spring (called vernacularly "The Packages"), which cut government spending by 2.5% of GDP. Growth dropped to 0.3% in 1997, −2.3% in 1998, and −0.5% in 1999. The government established a restructuring agency in 1999 and launched a revitalization program – to spur the sale of firms to foreign companies. Key priorities included accelerating legislative convergence with EU norms, restructuring enterprises, and privatising banks and utilities. The economy, fueled by increased export growth and investment, was expected to recover by 2000.

2000–2005

Growth in 2000–05 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 5% of GDP are beginning to decline as demand for Czech products in the European Union increases. Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Český Telecom took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.

2005–2010

Growth continued in the first years of the EU membership. The credit portion of the 2007–2008 financial crisis did not affect the Czech Republic much, mostly due to its stable banking sector which has learned its lessons during a smaller crisis in the late 1990s and became much more cautious. As a fraction of the GDP, the Czech public debt is among the smallest ones in Central and Eastern Europe. Moreover, unlike many other post-communist countries, an overwhelming majority of the household debt – over 99% – is denominated in the local Czech currency. That's why the country wasn't affected by the shrunken money supply in the U.S. dollars.

However, as a large exporter, the economy was sensitive to the decrease of the demand in Germany and other trading partners. In the middle of 2009, the annual drop of the GDP for 2009 was estimated around 3% or 4.3%, [46] a relatively modest decrease. The impact of the economic crisis may have been limited by the existence of the national currency that temporarily weakened in H1 of 2009, simplifying the life of the exporters.

2010–2015

Smartwings is the major Czech airline holding company with subsidies including the Czech Airlines. Smartwings Hungary Boeing 737-800 HA-LKG.jpg
Smartwings is the major Czech airline holding company with subsidies including the Czech Airlines.

Due to the Great Recession, Czech Republic was in stagnation or decreasing of GDP. Some commenters and economists criticising fiscally conservative policy of Petr Nečas' right-wing government, especially criticising ex-minister of finance, Miroslav Kalousek. Miroslav Kalousek in a 2008 interview, as minister of finance in the center-right government of Mirek Topolánek, said "Czech Republic will not suffer by financial crisis". [47] In September 2008, Miroslav Kalousek formed state budget with projection of 5% GDP increase in 2009. In 2009 and 2010, Czech Republic suffered strong economical crisis and GDP decreased by 4,5%. From 2009 to 2012, Czech Republic suffered highest state budget deficits in history of independent Czech Republic. From 2008 to 2012, the public debt of Czech Republic increased by 18,9%. Most decrease of industrial output was in construction industry (-25% in 2009, -15,5% in 2013). From 4Q 2009 to 1Q 2013, GDP decreased by 7,8%.

In 2012, Czech government increased VAT. Basic VAT was increased from 20% in 2012 to 21% in 2013 and reduced VAT increased from 14% to 15% in 2013. Small enterprises sales decreased by 21% from 2012 to 2013 as result of increasing VAT. [48] Patria.cz predicting sales stagnation and mild increase in 2013. Another problem is foreign trade. The Czech Republic is considered an export economy (the Czech Republic has strong machinery and automobile industries), however in 2013, foreign trade rapidly decreased which led to many other problems and increase of state budget deficit. In 2013, Czech National Bank, central bank, implemented controversial monetary step. To increase export and employment, CNB wilfully deflated Czech Crown (CZK), which inflation increased from 0.2% in November 2013, to 1.3% in 1Q 2014.

In 2014, GDP in the Czech Republic increased by 2% and is predicted to increase by 2.7% in 2015. In 2015, Czech Republic's economy grew by 4,2% and it's the fastest growing economy in the European Union. [49] On 29 May 2015, it was announced that growth of the Czech economy has increased from calculated 3,9% to 4,2%. [50]

2015–present

Cybersecurity software company Avast had its IPO on the Prague Stock Exchange and the London Stock Exchange in 2018. The information and communications technology (ICT) and software development is a major sector of the Czech economy. Praha Nusle Pikrtova 1a.jpg
Cybersecurity software company Avast had its IPO on the Prague Stock Exchange and the London Stock Exchange in 2018. The information and communications technology (ICT) and software development is a major sector of the Czech economy.

In August 2015, Czech GDP growth was 4.4%, making the Czech economy the highest growing in Europe. [52] On 9 November 2015, unemployment in the Czech Republic was at 5.9%, the lowest number since February 2009. [53] Dividends worth CZK 289 billion were paid to the foreign owners of Czech companies in 2016. [54]

Adoption of Euro and EU funds

Since its accession to the European Union in 2004, the Czech Republic has adopted the Economic and Monetary Union of the European Union and it is bound by the Treaty of Accession 2003 to adopt the Euro currency in the future.

Although the Czech Republic is economically well positioned to adopt the euro, following the European debt crisis there has been considerable opposition among the public adoption of the euro currency. [55] There is no target date by the government for joining the ERM II or adopting the euro. [56] The cabinet that was formed following the 2017 legislative election did not plan to proceed with euro adoption within its term, [57] and this policy was continued by the succeeding cabinet formed after the 2021 election. [58] However, by the start of 2024, President Petr Pavel called on the government to take concrete steps in adopting the euro. [59]

The Czech Republic also receives €24.2bn between 2014 and 2020 from the European Structural and Investment Funds, [60] [61] however, this sum does not outweigh the amount of capital outflow of profits of foreign owned firms from the Czech Republic into other EU members, at which the funds are aimed to compensate for. [62]

Public policy

Ministry of Industry and Trade Praha, Holesovice, Letna, Ministerstvo prumyslu a obchou.jpg
Ministry of Industry and Trade

Social policy in the Czech Republic addresses issues such as healthcare, education, social welfare, housing and pensions. The government provides [63] social assistance and benefits to vulnerable groups, including the elderly, disabled, and unemployed. These social safety nets help protect individuals and families against income loss and social risks.

The Czech Republic has elements of the European social model in its welfare system and social policies. However, there are some aspect, where the Czech Republic differs from the model.

The Czech Republic provides universal access to healthcare, and healthcare services are predominantly financed through compulsory health insurance contributions. The country has a well-developed healthcare system that aims to provide essential medical care to all citizens.

The Czech Republic has labor market regulations [64] in place to protect workers' rights, ensure fair wages, and promote job security. However, labor market flexibility has increased in recent years, and the country has undertaken labor market reforms to enhance competitiveness.

As of 2016, the Czech Republic has the second lowest poverty rate of OECD members only behind Denmark. [36] The Czech healthcare system ranks 13th in the 2016 Euro health consumer index. [65]

Prague Stock Exchange

The Czech economy also includes its capital market. In the case of the Czech Republic, it is the Prague Stock Exchange [66] (PSE). The Prague Stock Exchange is governed by the Capital Market Business Act and the stock exchange rules it sets itself. All of its activities are controlled by the Czech National Bank. The Vienna Stock Exchange is the majority shareholder of the Prague Stock Exchange.

The Prague Stock Exchange has four main markets:

The largest issue traded on the Prague Stock Exchange is the energy company ČEZ. [71] The main activity of ČEZ is the sale of electricity, mainly generated from its own sources, and the related provision of support services to the electricity system. Other large issues on the Prague Stock Exchange's Prime Market include banking houses - Komerční banka, [72] MONETA Money Bank [73] and the dual listing of the Austrian company Erste Group Bank, [74] under which the local bank Česká spořitelna [75] falls; as well as Colt CZ Group [76] focusing mainly on the production of firearms (traded on the Prague Stock Exchange from 2020). From the Standard market, the largest issue is Philip Morris ČR, the largest manufacturer and seller of tobacco products in the Czech Republic. On the START market, we find, for example, e-commerce companies Bezvavlasy [77] and Pilulka Lékárny, [78] leather manufacturer and processor KARO Leather [79] or urban furniture manufacturer mmcité. [80]

Energy

In Czech Republic energy production is diverse, with a mix of nuclear, coal, natural gas, and renewable sources. Nuclear power plays a significant role, while efforts to increase renewable usage are underway. The country aims to balance energy security, environmental concerns and sustainability in its energy policies. National objectives are to cut gas emissions by 40 percent by 2030 (compared with 1990) and to construct one nuclear reactor at the current Dukovany NPP site by late 2030s. [81]

The Czech energy sector is largely built around two large nuclear plants and several smaller conventional coal power plants. Nuclear and coal power plants provide primarily baseload power at a high level of utilization, while gas fired units, reservoir hydro and pumped storage provide flexible generation. Recent rises in costs of carbon credits have made coal power plants almost financially inviable.  [81]

in 2022, Czech gross electricity production reached 78.8 terawatt-hours (TWh), while domestic consumption was around 60.4 TWh. The Czech energy mix was made up of 53.60 percent fossil fuels (47.50 percent lignite, 5.86 percent natural gas, etc.), 40.95 percent nuclear power, and 5.46 percent renewables (3.34 percent biomass, 1.47 percent solar, 0.63 percent water, etc.). The first green hydrogen electrolyzer powered by solar energy in the Czech Republic started in May 2023 with production capacity of about 100 kilograms per day / 8,000 kilograms of green hydrogen per year.   [81]

While the goal of EU funds is to support a sustainable low-carbon-emission economy and ensure energy security by utilizing alternative energies, the Czech approach is different. As described in the State Energy Policy, the future Czech energy mix will be primarily based on nuclear power with a goal of reaching 50 percent of the energy supply. Due to EU regulations, the share of coal energy will decrease but be largely replaced by both one (and possibly more) large nuclear reactors. The deployment of a series of small modular reactors is also under consideration by the Czechs. The share of alternative energies will grow but its potential for becoming the backbone of the energy sector is unclear. [81] [82] [83]

Statistical indicators

Real GPD per capita development the Czech Republic 1970 to 2018 GDP per capita development of Czechia.svg
Real GPD per capita development the Czech Republic 1970 to 2018
Percentage of GDP growth in the Czech Republic 1997-2019 Rust ceskeho HDP 97-19.jpg
Percentage of GDP growth in the Czech Republic 1997–2019
Credit ratings by Standard & Poor's Notation financiere des Etats europeens par Standard & Poor's.svg
Credit ratings by Standard & Poor's
Average gross wage in the Czech Republic (1990-2015) Mesicni prumerna mzda v CR (1990-2015).jpg
Average gross wage in the Czech Republic (1990–2015)
EU by GNI per capita, PPP (current international $). World Bank 2016 EU by GNI per capita PPP current international.jpg
EU by GNI per capita, PPP (current international $). World Bank 2016

Development of main indicators

The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green. [84]

YearGDP
(in Bil. US$ PPP)		GDP per capita
(in US$ PPP)		GDP

(in Bil. US$ nominal)

GDP growth
(real)		Inflation rate
(in Percent)		Unemployment
(in Percent)		Government debt
(in % of GDP)
2015Increase2.svg340.6Increase2.svg32,318Increase2.svg209.1Increase2.svg5.3 %Increase2.svg0.3 %Decrease Positive.svg5.0 %Decrease Positive.svg40.0 %
2016Increase2.svg353.9Increase2.svg33,529Increase2.svg229.6Increase2.svg2.6 %Increase2.svg0.7 %Decrease Positive.svg3.9 %Decrease Positive.svg36.8 %
2017Increase2.svg375.7Increase2.svg35,512Decrease2.svg208.9Increase2.svg4.3 %Increase Negative.svg2.4 %Decrease Positive.svg2.9 %Decrease Positive.svg34.7 %
2018Increase2.svg397.7Increase2.svg37,547Increase2.svg211.7Increase2.svg3.5 %Increase Negative.svg2.3 %Increase Negative.svg3.0 %Decrease Positive.svg32.9 %
2019Increase2.svg418.7Increase2.svg39,478Decrease2.svg209.4Increase2.svg3.0 %Increase2.svg2.0 %Increase Negative.svg3.2 %Decrease Positive.svg31.3 %
2020Increase2.svg437.7Increase2.svg41,220Decrease2.svg188.0Increase2.svg2.5 %Increase2.svg2.0 %Increase Negative.svg3.4 %Decrease Positive.svg29.4 %

Background

From the CIA World Factbook 2017GDP (pp.): $353.9 billion (2016) GDP (nom.): $195.3 billion (2016) GDP Growth: 2.6% (2016) GDP per capita (pp.): $33,500 (2016) GDP per capita (nom.): $18,487 (2016) GDP by sector:Agriculture: 2.5% Industry: 37.5% Services: 60% (2016) Inflation: 0.7% (2016) Labour Force: 5.427 million (2017) Unemployment: 2,3% (September 2018) [85]

Industrial production growth rate: 3.5% (2016)

Household income or consumption by percentage share: (2015)

Public Debt: 34.2% GDP (2018)

Trade and finance

Exports: $136.1 billion Export goods: machinery and transport equipment, raw materials, fuel, chemicals (2018)

Imports: $122.8 billion Import goods: machinery and transport equipment, raw materials and fuels, chemicals (2018) Current Account balance: $2.216 billion (2018) Export partners: Germany 32.4%, Slovakia 8.4%, Poland 5.8%, UK 5.2%, France 5.2%, Italy 4.3%, Austria 4.2% (2016) Import partners: Germany 30.6%, Poland 9.6%, China 7.5%, Slovakia 6.3%, Netherlands 5.3%, Italy 4.1% (2016) Reserves: $85.73 billion (31 December 2016) Foreign Direct Investment: $139.6 billion (31 December 2016) Czech Investment Abroad: $43.09 billion (31 December 2016) External debt: $138 billion (31 December 2016) Value of Publicly Traded Shares: $44.5 billion (31 December 2016)

Exchange rates:

IT and Telecommunications

Households with access to fixed and mobile telephone access [87]

Individuals with mobile telephone access

Broadband penetration rate [87]

Individuals using computer and internet [87]

Companies

In 2022, the sector with the highest number of companies registered in Czech Republic is Services with 295,538 companies followed by Finance, Insurance, and Real Estate and Wholesale Trade with 189,308 and 95,142 companies respectively. [92]

International rankings

Society and quality of life

Index of Economic Freedom 2018 Index of Economic Freedom 2018.png
Index of Economic Freedom 2018

Macroeconomics

See also

Resources

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The economy of Romania is a developing high-income mixed economy, with a high degree of complexity. It ranks 12th in the European Union by total nominal GDP and 7th largest when adjusted by purchasing power (PPP). The World Bank notes that Romania's efforts are focused on accelerating structural reforms and strengthening institutions in order to further converge with the European Union. The country's economic growth has been one of the highest in the EU since 2010, with 2022 seeing a better-than-expected 4.8% increase.

<span class="mw-page-title-main">Economy of Slovakia</span>

The economy of Slovakia is based upon Slovakia becoming an EU member state in 2004, and adopting the euro at the beginning of 2009. Its capital, Bratislava, is the largest financial centre in Slovakia. As of Q1 2018, the unemployment rate was 5.72%.

<span class="mw-page-title-main">Economy of Slovenia</span>

The economy of Slovenia is a developed mixed economy. The country enjoys a high level of prosperity and stability as well as above-average GDP per capita by purchasing power parity at 91% of the EU average in 2023. The nominal GDP in 2023 is 68.108 billion USD, nominal GDP per capita (GDP/pc) in 2023 is USD 32,350. The highest GDP/pc is in central Slovenia, where the capital city Ljubljana is located. It is part of the Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.

<span class="mw-page-title-main">Visegrád Group</span> Cultural and political alliance in Europe

The Visegrád Group is a cultural and political alliance of four Central European countries: the Czech Republic, Hungary, Poland, and Slovakia. The alliance aims to advance co-operation in military, economic, cultural and energy affairs, and to further their integration with the EU. All four states are also members of the European Union (EU), the North Atlantic Treaty Organization (NATO), and the Bucharest Nine (B9).

<span class="mw-page-title-main">Economy of the Netherlands</span>

The economy of the Netherlands is a highly developed market economy focused on trade and logistics, manufacturing, services, innovation and technology and sustainable and renewable energy. It is the world's 18th largest economy by nominal GDP and the 28th largest by purchasing power parity (PPP) and is the fifth largest economy in European Union by nominal GDP. It has the world's 11th highest per capita GDP (nominal) and the 13th highest per capita GDP (PPP) as of 2023 making it one of the highest earning nations in the world. Many of the world's largest tech companies are based in its capital Amsterdam or have established their European headquarters in the city, such as IBM, Microsoft, Google, Oracle, Cisco, Uber, Netflix and Tesla. Its second largest city Rotterdam is a major trade, logistics and economic center of the world and is Europe's largest seaport. Netherlands is ranked fifth on global innovation index and fourth on the Global Competitiveness Report. Among OECD nations, Netherlands has a highly efficient and strong social security system; social expenditure stood at roughly 25.3% of GDP.

<span class="mw-page-title-main">Economy of Iceland</span>

The economy of Iceland is small and subject to high volatility. In 2011, gross domestic product was US$12 billion, but by 2018 it had increased to a nominal GDP of US$27 billion. With a population of 387,000, this is $55,000 per capita, based on purchasing power parity (PPP) estimates. The 2008–2011 Icelandic financial crisis produced a decline in GDP and employment that has since been reversed entirely by a recovery aided by a tourism boom starting in 2010. Tourism accounted for more than 10% of Iceland's GDP in 2017. After a period of robust growth, Iceland's economy is slowing down according to an economic outlook for the years 2018–2020 published by Arion Research in April 2018.

<span class="mw-page-title-main">Economy of Austria</span>

The economy of Austria is a highly developed social market economy, with the country being one of the fourteen richest in the world in terms of GDP per capita. Until the 1980s, many of Austria's largest industry firms were nationalised. In recent years, privatisation has reduced state holdings to a level comparable to other European economies. Among OECD nations, Austria has a highly efficient and strong social security system; social expenditure stood at roughly 29.4% of GDP.

<span class="mw-page-title-main">Economy of Europe</span>

The economy of Europe comprises about 748 million people in 50 countries.

<span class="mw-page-title-main">Economy of the European Union</span>

The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the second largest economy in the world in nominal terms, after the United States, and the third largest at purchasing power parity (PPP), after China and the US. The European Union's GDP is estimated to be $19.40 trillion (nominal) in 2024 or $28.04 trillion (PPP), representing around one-sixth of the global economy. Germany has the biggest national GDP of all EU countries, followed by France and Italy. In 2022, the social welfare expenditure of the European Union (EU) as a whole was 27.2% of its GDP.

<span class="mw-page-title-main">Economy of Lithuania</span>

The economy of Lithuania is the largest economy among the three Baltic states. Lithuania is a member of the European Union and belongs to the group of very high human development countries and is a member of the WTO and OECD.

<span class="mw-page-title-main">Economy of Sweden</span>

The economy of Sweden is a highly developed export-oriented economy, aided by timber, hydropower, and iron ore. These constitute the resource base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuticals, industrial machines, precision equipment, chemical goods, home goods and appliances, forestry, iron, and steel. Traditionally, Sweden relied on a modern agricultural economy that employed over half the domestic workforce. Today Sweden further develops engineering, mine, steel, and pulp industries, which are competitive internationally, as evidenced by companies such as Ericsson, ASEA/ABB, SKF, Alfa Laval, AGA, and Dyno Nobel.

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