Diplomatic representation in the US: chief of mission: Ambassador Aleksandr 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 28129, APO AE 09114; State pouch: American Embassy Prague, Washington, DC 20521-5630 telephone: [420] (2) 5732-0663, 5731-3814 FAX: [420] (2) 5732-0584
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)
@Czech Republic:Economy
Economy-overview: Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles, which culminated in a currency crisis in May. The currency was forced out of its fluctuation band as investors worried that the current account deficit, which reached about 8% of GDP in 1996, would become unsustainable. After expending $3 billion in vain to support the currency, the central bank let it float. The growing current account imbalance reflected a surge in domestic demand and poor export performance, as wage increases outpaced productivity. The government was forced to introduce two austerity packages later in the spring which cut government spending by 2.5% of GDP. A tough 1998 budget continues the painful medicine. These problems were compounded in the summer of 1997 by unprecedented flooding which inundated much of the eastern part of the country. Czech difficulties in 1997 contrast with earlier achievements of strong GDP growth, a balanced budget, and inflation and unemployment that were among the lowest in the region. The Czech economy's transition problems continue to be too much direct and indirect government influence on the privatized economy, the sometimes ineffective management of privatized firms, and a shortage of experienced financial analysts for the banking system. Prague forecasts a balanced budget, 2.2% GDP growth, 5.2% unemployment, and 10% inflation for 1998.
GDP: purchasing power parity-$111.9 billion (1997 est.)
GDP-real growth rate: 0.7% (1997 est.)
GDP-per capita: purchasing power parity-$10,800 (1997 est.)
GDP-composition by sector: agriculture: 5% industry: 40.6% services: 54.4% (1996)
Inflation rate-consumer price index: 10% (1997)