(Last updated: 14 Apr 2009)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Czech Republic. This is regularly updated, and should be checked before planning travel.

Country overview

Capital city:	Prague
Surface area:	79,000 sq km
Population:	10.3 million
Official language(s):	Czech
Head of State:	H.E. President Mr Vaclav Klaus
Head of Government:	Prime Minister Mr Mirek Topolanek
Australian exports to the Czech Republic:	A$111 million
Australian imports from the Czech Republic:	A$285 million
The Czech Republic's principal export destinations:	Germany, Slovakia, Poland
The Czech Republic's principal import sources:	Germany, China, Poland

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

The Czech economy has been undergoing major privatisation and reconstruction since 1990.

Key economic indicators and statistics for 2008:

• GDP – US$217.2 billion

• GPD per capita – US$21,041

• Real GDP growth – 4 per cent

• Inflation – 5.7 per cent

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Political climate

The political and social situation in the Czech Republic has been stable since it was established in 1993. The Czech Republic became a full member of NATO in 1999 and participates in supporting NATO countries in areas such Afghanistan.

The Czech Republic is a democratic country, founded after the former Czechoslovakia was divided into two separate countries in 1993.

The Parliament of the Czech Republic is bicameral consisting of the House of Representatives and the Senate with President Vaclav Klaus as its head. The strongest political parties are Civic Democratic Party, Social Democrats, Christian Democrats/People’s Party, Green Party, Communistic Party.

Trade relations and statistics

The Czech Republic became a full member of the European Union in May 2004.

The country is a member of the Organisation for Economic Cooperation and Development (OECD) and European Bank for Reconstruction and Development (EBRD).

Due to its geographical position in the centre of Europe and its historical heritage, it has strong ties with other central European countries such as Slovakia, Poland and Hungary.

Under communist rule (1948–1989), the country was oriented East and was a satellite of the Soviet Union. After the revolution and change of political climate in 1989 it adopted a Western economic and political philosophy.

Although the Czech Republic is not a major trading partner, it offers potential as a destination for Australian investment. The Czechs are particularly interested in Australian investment in high technology and industrial services.

Major Australian exports to the Czech Republic (2007-08):

• Wool and other animal hair (including tops) – A$97 million
• Medicaments (including veterinary) – A$3 million
• Electrical circuits equipment – A$2 million
• Measuring and analysing instruments –A$1 million

Major Australian imports from the Czech Republic (2007-08):

• Telecom equipment and parts – A$27 million
• Wood, simply worked – A$25 million
• Civil engineering equipment and parts – A$25 million
• Passenger motor vehicles – A$24 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)