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.

[41] 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.

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.

[citation needed] Two government priorities have been strict fiscal policies and creating a good climate for incoming investment in the republic.

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.

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.

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.

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.

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.

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.

Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.

Moreover, unlike many other post-communist countries, an overwhelming majority of the household debt – over 99% – is denominated in the local Czech currency.

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.

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".

[56] However, by the start of 2024, President Petr Pavel called on the government to take concrete steps in adopting the euro.

The government provides [61] social assistance and benefits to vulnerable groups, including the elderly, disabled, and unemployed.

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[62] in place to protect workers' rights, ensure fair wages, and promote job security.

[78] In Czech Republic energy production is diverse, with a mix of nuclear, coal, natural gas, and renewable sources.

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.

Recent rises in costs of carbon credits have made coal power plants almost financially inviable.

): $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)[83] Industrial production growth rate: 3.5% (2016) Household income or consumption by percentage share: (2015) Public Debt: 34.2% GDP (2018) 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: Households with access to fixed and mobile telephone access[85] Individuals with mobile telephone access Broadband penetration rate[85] Individuals using computer and internet[85] 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.