Chamber of Commerce Country Factsheet Last update: 15.05.2017
Your advisors at the Chamber of Commerce
- Steven Koener+352423939379
- Diana Rutledge+352423939335
At the close of World War I, the Czechs and Slovaks of the former Austro-Hungarian Empire merged to form Czechoslovakia. During the interwar years, having rejected a federal system, the new country's predominantly Czech leaders were frequently preoccupied with meeting the increasingly strident demands of other ethnic minorities within the republic, most notably the Slovaks, the Sudeten Germans, and the Ruthenians (Ukrainians). On the eve of World War II, Nazi Germany occupied the territory that today comprises Czechia, and Slovakia became an independent state allied with Germany. After the war, a reunited but truncated Czechoslovakia (less Ruthenia) fell within the Soviet sphere of influence. In 1968, an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize communist rule and create "socialism with a human face," ushering in a period of repression known as "normalization." The peaceful "Velvet Revolution" swept the Communist Party from power at the end of 1989 and inaugurated a return to democratic rule and a market economy. On 1 January 1993, the country underwent a nonviolent "velvet divorce" into its two national components, the Czech Republic and Slovakia. The Czech Republic joined NATO in 1999 and the European Union in 2004. The country changed its short-form name to Czechia in 2016.
GDP growth increased strongly in 2015, partly due to EU-financed public investment. Financial conditions and income growth will continue to support domestic demand, but falling public investment is weighing on growth in 2016. Although gains in market share are likely to be smaller than in recent years, stronger demand from European countries will support export growth. Headline inflation remains low, but robust wage growth and fading effects of food and energy price falls will push inflation to the 2% target by end-2017.
The exchange rate floor prevented appreciation of the currency and thereby helped to contain deflationary pressures. As these pressures are waning, the central bank has rightly confirmed that the floor is temporary. Public investment has fallen sharply with the transition to the new EU programming period, and will be offset only partly by spending elsewhere.
Income convergence stalled in the aftermath of the crisis. Structural policies are needed to underpin faster growth on a sustainable and inclusive basis. Policies should focus on generating domestic innovation and creating conditions for successful SMEs to flourish. Expanding childcare availability would increase labour market participation and reduce gender-related wage gaps, thereby reducing labour market tightness and improving inclusiveness.
Source: OECD - Economic Forecast
|Gross domestic product, constant prices|
|Gross domestic product, current prices|
U.S. dollars (Billions)
|Gross domestic product per capita, current prices|
U.S. dollars (Units)
|Inflation, average consumer prices|
|Volume of imports of goods and services|
|Volume of exports of goods and services|
Percent of total labor force
|Current account balance|
U.S. dollars (Billions)
|Current account balance|
Percent of GDP
Source: IMF Statistics - Czech Republic
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
Convention from 18.07.14 (Mémorial 2014, A, p. 1859)
Effective as of 01.01.15 (Memorial 2014, A)
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Czech Republic
Embassy of the Grand Duchy of Luxembourg in Czech Republic
Ambassador Extraordinary and Plenipotentiary: Mrs. Michèle PRANCHERE-TOMASSINI
Secretary of Legation: Mr. Franck BIEVER
9, rue Apolinarska
CZ - 128 00 PRAHA 2
Tel: 420 257 18 18 00
Fax: 420 257 53 25 37
Economic and Commercial Attaché (AWEX):
11000 Praha 1
Tel: +420 224 934 570
Fax: +420 224 934 573
Country risk as defined by Office du Ducroire for Czech Republic
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other useful links
- CIA World factbook on Czech Republic
- Czech Chamber of Commerce
- La République tchèque sur le site de l'AWEX
- Doing Business in the Czech Republic
The Chamber of Commerce and the country
- 30.09.2014 - 02.10.2014
- 08.10.2013 - 09.10.2013