Overview of Prague


Economy of Prague


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Czech Republic

The Czech Republic's economy has developed quickly in spite of its many serious set-backs such as war and communist oppression.

The GDP (PPP) for 2010 was estimated at: US$ 258,959 billion
Per capita: US$24,832

The Czech Republic has benefited from being part of the Schengen Area and the EU market. It has also entered into the World Trade Organization. The Ministry of Industry and Trade oversees the economic developments of the country.

There has been interest in adopting the euro, but the current government is reluctant. Original plans to adopt the currency in 2010 were scrapped and a potential change in 2012 is still tentative. most likely, the change will occur in 2013 at the earliest.

The country is one of the most stable and prosperous of the post-Communist states. Most of the economy has been privatized, including the banks and telecommunications. With the success of these ventures, further privatization will continue, possibly including the energy industry and the Prague airport.

However, there is still a significant amount of corruption within the current system. The public budgets are also still in deficit despite strong growth. The country is doing better than original projections after entering the EU, but it still has significant improvement to make.

Prague

The modern economy of Prague is largely service and export-based. The city has developed rapidly and is named as one of the best cities for innovation globally and the best in Central Europe. The city accounts for 25% of the Czech Republic's GDP making it the pinnacle of Czech economics.

Prague's industry includes pharmaceuticals, printing, food processing, manufacture of transport equipment, computer technology and electrical engineering. the many services the city offers, such as: financial, commercial, trade, restaurants, accommodations and public administration. Services now account for around 80% of employment. Tourism is surely the biggest earner, with about half of the national income directly attributed to tourism in Prague.

There are 800,000 employees in Prague, with an additional 120,000 commuters. In 2010, there were about 150,000 foreign workers (about 18% of the workforce).


Update 27/01/2011

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