The Economy in the Czech Republic

GDP (gross domestic product) is approximately $254 billion (comparable to Indiana). Per capita, the GDP is roughly $25000.00 (just over 50% of the average US citizen). Some primary income generators for the Czech Rep are trucks and cars (Škoda, the VW subsidiary, has become a well-regarded automaker), beer (such as “Czechvar”, the US name for the original Budweiser, and Pilsner Urquell) and machine parts. The recent financial crisis resulted in a huge decline in cars, trucks and machine parts—although not in beer consumption, which only declined slightly (most Czech beer is domestically consumed). Over 33% of trade occurs with the adjacent country Germany; thus, the economic indicators for Germany 1 year will usually determine the Czech Rep’s indicators the following year. The privatization of industries that were formerly run by the government carries on. Energy companies and airlines are next on the list to be sold.