Diplomatic representation in the US: chief of mission: Ambassador Alexander VONDRA chancery: 3900 Spring of Freedom Street NW, Washington, DC 20008 telephone: [1] (202) 274-9101, 9102 FAX: [1] (202) 966-8540 consulate(s) general : Los Angeles
Diplomatic representation from the US: chief of mission: Ambassador Jenonne R. WALKER embassy : Trziste 15, 11801 Prague 1 mailing address: Unit 1330, APO AE 09213 telephone: [420] (2) 5732-0663 FAX: [420] (2) 5732-0920
Flag description: 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
Economy - overview: Western observers view the Czech Republic as one of the most politically and economically stable post-Communist states. Its key macroeconomic indicators are, in the aggregate, the best in the region, and public opinion polls show strong support for reform. The country emerged from recession in 1994 with 2.6% growth and reached about 5% growth in both 1995 and 1996 while keeping a balanced budget and reorienting exports to the EU. Inflation and unemployment of 8.7% and 3.3% respectively in 1996 are among the lowest in the region. 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 in private hands or is partially privatized. The Czech Republic appears to be the East European frontrunner in economic integration with the West; for example, in 1996 it began to strengthen its bankruptcy law and to improve the transparency of stock market operations. It was the first post-Communist member of the OECD and is expected to be in the next group of new EU members. Its solid economic performance has led Standard and Poor's to upgrade the country's sovereign credit rating to "A" and has attracted over $6.7 billion in direct foreign investment to Czech industry between 1990 and September 1996 - one quarter from the US. Prague's biggest macroeconomic concerns now are mounting trade and current account deficits. In addition, the Czech economy still faces transition problems. The government continues to exert too much direct and indirect influence on the privatized economy, and the management of privatized firms sometimes is ineffective. Insufficient regulation and lack of public information in the capital markets and the banking system, combined with a shortage of experienced financial analysts, limit the ability to distribute new credit efficiently. The judicial system also has trouble speedily processing bankruptcy cases. Prague has promised to overhaul its bankruptcy law and improve stock market and bank operations, but it will take years to ensure compliance. Prague forecasts a balanced budget, 4.5% GDP growth, 3.3% unemployment and 7.5% to 8% inflation for 1997.
GDP: purchasing power parity - $114.3 billion (1996 est.)
GDP - real growth rate: 5% (1996 est.)
GDP - per capita: purchasing power parity - $11,100 (1996 est.)
GDP - composition by sector: agriculture: 4% industry: 43% services : 53% (1996 est.)
Inflation rate - consumer price index: 8.7% (1996 est.)