- Basic description of the economy and money systems of The Czech Republic.
- One of the most stable and prosperous of the post-Communist states of Central and Eastern Europe.
- 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 plays an 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.
- Privatization of the state-owned telecommunications firm Cesky 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.
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