Czech Republic
Economy

The Czech Republic has a developed, high-income export-oriented social market economy based in services, manufacturing and innovation, that maintains a welfare state and the European social model. 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, but uses its own currency, the Czech koruna, instead of the euro. It has a per capita GDP rate that is 91% of the EU average and is a member of the OECD. Monetary policy is conducted by the Czech National Bank, whose independence is guaranteed by the Constitution. The Czech Republic ranks 12th in the UN inequality-adjusted human development and 24th in World Bank Human Capital Index. It was described by The Guardian as "one of Europe's most flourishing economies".

As of 2023, the country's GDP per capita at purchasing power parity is $51,329 and $29,856 at nominal value. According to Allianz A.G., in 2018 the country was an MWC (mean wealth country), ranking 26th in net financial assets. The country experienced a 4.5% GDP growth in 2017. The 2016 unemployment rate was the lowest in the EU at 2.4%, and the 2016 poverty rate was the second lowest of OECD members. Czech Republic ranks 27th in the 2021 Index of Economic Freedom, 31st in the 2023 Global Innovation Index, down from 24th in the 2016, 29th in the Global Competitiveness Report, and 25th in the Global Enabling Trade Report. The Czech Republic has a diverse economy that ranks 7th in the 2016 Economic Complexity Index. The industrial sector accounts for 37.5% of the economy, while services account for 60% and agriculture for 2.5%. The largest trading partner for both export and import is Germany and the EU in general. Dividends worth CZK 270 billion were paid to the foreign owners of Czech companies in 2017, which has become a political issue. The country has been a member of the Schengen Area since 1 May 2004, having abolished border controls, completely opening its borders with all of its neighbors on 21 December 2007.
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