<hdr>The World Factbook 1994: Czech Republic<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> The dissolution of Czechoslovakia into two independent nation states—the Czech Republic and Slovakia—on 1 January 1993 has complicated the task of moving toward a more open and decentralized economy. The old Czechoslovakia, even though highly industrialized by East European standards, suffered from an aging capital plant, lagging technology, and a deficiency in energy and many raw materials. In January 1991, approximately one year after the end of communist control of Eastern Europe, the Czech and Slovak Federal Republic launched a sweeping program to convert its almost entirely state-owned and controlled economy to a market system. In 1991-92 these measures resulted in privatization of some medium- and small-scale economic activity and the setting of more than 90% of prices by the market—but at a cost in inflation, unemployment, and lower output. For Czechoslovakia as a whole inflation in 1991 was roughly 50% and output fell 15%. In 1992, in the Czech lands, inflation dropped to an estimated 12.5% and GDP was down a more moderate 5%. In 1993, Czech aggregate output remained unchanged, prices rose about 19%, and unemployment hovered above 3%; exports to Slovakia fell roughly 30%. An estimated 40% of the economy was privately owned. In 1994, Prague expects 2% to 3% growth in GDP, roughly 9% inflation, and 5% unemployment. Economic growth in 1994 is less important than continued economic restructuring; a mere 1% growth would be noteworthy if restructuring is accompanied by rising unemployment and enterprise bankruptcies.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$75 billion (1993 est.)
<item><hi format=bold>National product real growth rate:</hi> 0% (1993 est.)
<item><hi format=bold>National product per capita:</hi> $7,200 (1993 est.)
<item>• <hi format=ital>commodities:</hi> machinery and transport equipment, fuels and lubricants, manfactured goods, raw materials, chemicals, agricultural products
<item>• <hi format=ital>consumption per capita:</hi> 6,030 kWh (1992)
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<item><hi format=bold>Industries:</hi> fuels, ferrous metallurgy, machinery and equipment, coal, motor vehicles, glass, armaments
<item><hi format=bold>Agriculture:</hi> largely self-sufficient in food production; diversified crop and livestock production, including grains, potatoes, sugar beets, hops, fruit, hogs, cattle, and poultry; exporter of forest products
<item><hi format=bold>Illicit drugs:</hi> transshipment point for Southwest Asian heroin and Latin American cocaine to Western Europe
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>donor:</hi> the former Czechoslovakia was a donor—$4.2 billion in bilateral aid to non-Communist less developed countries (1954-89)
