Part 198

Diplomatic representation in US: chief of mission: Ambassador Michael ZANTOVSKY chancery: 3900 Spring of Freedom Street NW, Washington, DC 20008 telephone: (202) 363-6315, 6316 FAX: (202) 966-8540

US diplomatic representation: chief of mission: Ambassador Jenonne R. WALKER embassy: Trziste 15, 11801 Prague 1 mailing address: Unit 1330, APO AE 09213-1330 telephone: (2) 2451-0847 FAX: (2) 2451-1001

Flag: two equal horizontal bands of white (top) and red with a blue isosceles triangle based on the hoist side (almost identical to the flag of the former Czechoslovakia)

Economy -------

Economic overview: The Czech Republic, which separated from Slovakia on 1 January 1993, emerged from recession with 2.6% growth in 1994 and 5% growth in 1995. Inflation in 1994-95 was cut in half; unemployment was kept at about 3%; the budget was balanced; and exports were reoriented to the EU. Prague's mass privatization program, including its innovative distribution of ownership shares to Czech citizens via "coupon vouchers," has made the most rapid progress in Eastern Europe. About 80% of the economy is wholly or partially in private hands. Because of its progress on reform, the Czech Republic in 1995 became the first post-Communist member of the OECD. Its solid economic performance also led Standard and Poor's to upgrade the country's sovereign credit rating to "A" and attracted nearly $5.3 billion in direct foreign investment to Czech industry between 1990 and September 1995. The Czech crown became convertible for current account transactions in October 1995. Czech companies increasingly are using the international capital market to fund capital investment, and foreign currency reserves totaled $13.9 billion at the end of 1995. Prague's biggest macroeconomic concern now is limiting the inflationary effect of these large capital inflows. The Czech economy also still faces microeconomic problems. Prague has promised to strengthen its bankruptcy law and improve the transparency of stock market operations in 1996, but some changes probably will not take effect until some time after the parliamentary elections of mid-1996 and will depend largely on voluntary compliance. Prague forecasts a balanced budget, 5.5% GDP growth, 2.8% unemployment, and 8.1% inflation for 1996.

GDP: purchasing power parity - $106.2 billion (1995 est.)

GDP real growth rate: 5% (1995 est.)

GDP per capita: $10,200 (1995 est.)

GDP composition by sector: agriculture: 5.8% industry: 40.7% services: 53.5%

Inflation rate (consumer prices): 9.1% (1995 est.)

Labor force: 5.389 million by occupation: industry 37.9%, agriculture 8.1%, construction 8.8%, communications and other 45.2% (1990)

Unemployment rate: 2.9% (1995 est.)

Budget: revenues: $16.5 billion expenditures: $16.2 billion, including capital expenditures of $NA (1995 est.)

Industries: fuels, ferrous metallurgy, machinery and equipment, coal, motor vehicles, glass, armaments

Industrial production growth rate: 12.9% (January-November 1995)

Electricity: capacity: 14.470,000 kW production: 56.3 billion kWh consumption per capita: 4,842 kWh (1993)

Agriculture: grains, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry; forest products

Illicit drugs: transshipment point for Southwest Asian heroin and Latin American cocaine to Western Europe

Exports: $17.4 billion (f.o.b., 1995 est.) commodities: manufactured goods, machinery and transport equipment, chemicals, fuels, minerals, metals, agricultural products partners: Germany 32.4%, Slovakia 16.1%, Austria 6.7%, Poland 5.3%, Italy 4%, Russia 3.3%, Netherlands 2.8%, France 2.6%, UK 2.2%, Hungary 2.1%, US 1.8%, Belgium 1.5% (January-September 1995)

Imports: $21.3 billion (f.o.b., 1995 est.) commodities: machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, raw materials, agricultural products partners: Germany 26%, Slovakia 13.2%, Russia 9.2%, Austria 7%, Italy 5.6%, France 4.1%, US 3.8%, Poland 3.1%, Netherlands 2.9%, UK 2.9%, Switzerland 2.1%, Belgium 2.0% (January-September 1995)

External debt: $14.9 billion (June 1995)

Economic aid: recipient: ODA, $27 million (1993)

Currency: 1 koruna (Kc) = 100 haleru

Exchange rates: koruny (Kcs) per US$1 - 26.967 (January 1996), 26.541 (1995), 28.785 (1994), 29.153 (1993), 28.26 (1992), 29.53 (1991), 17.95 (1990) note: values before 1993 reflect Czechoslovak exchange rates

Fiscal year: calendar year

Transportation --------------

Railways: total: 9,413 km standard gauge: 9,316 km 1.435-m standard gauge (2640 km electrified) narrow gauge: 97 km several narrow gauges (1995)

Highways: total: 55,557 km (1994 est.) paved: NA km unpaved: NA km