| Emerging Market-Czech Republic |
Emerging market is the situation
where the economy of the Country is in the process of moving from
a closed to an open market economy while building accountability
within the system.
The Czech Republic is one of the most developed and industrialized
economies Eastern Europe. The Czech Republic has a well-educated
population and well-developed infrastructure. The country's strategic
location in Europe, low-cost structure, and skilled work force has
attracted strong inflows of foreign direct investment. This investment
is rapidly modernizing its industrial base and increasing productivity.
The principal industries are motor vehicles, machine-building, iron
and steel production, metalworking, chemicals, electronics, transportation
equipment, textiles, glass, brewing, china, ceramics, and pharmaceuticals.
The main agricultural products are sugar beets, fodder roots, potatoes,
wheat, and hops. As a small, open economy in the heart of Europe,
economic growth is strongly influenced by demand for Czech exports
and flows of foreign direct investment. The Czech Republic is a
member of the United Nations and participates in its specialized
agencies. It is a member of the World Trade Organization. On the
basis of following facts, one can easily predict that there is huge
potential of growth in the Czech Republic:
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| Economic background showing huge growth potential |
People
Nationality: Noun and adjective--Czech(s).
Population (est.): 10.2 million.
Annual growth rate: 0.1%.
Ethnic groups: Czech (90.4% or 9.25 million); Moravian (more than
380,000); Slovak (193,000); Roma (171,000); Silesian (11,000); Polish
(52,000); German (39,000); Ukrainian (22,000); and Vietnamese (18,000).
Religions: Roman Catholic, Protestant.
Language: Czech.
Education: Literacy-99.8%.
Health: Life expectancy--males 72.3 yrs., females 78.5 yrs.
Work force (5.13 million): Industry, construction, and commerce-54.3%;
government and other services--41%; agriculture-4.7%.
Economy
GDP (2005): $109.3 billion.
Per capital income: $10,710.
Natural resources: Coal, coke, timber, lignite, uranium, magnesite.
Agriculture: Products--wheat, rye, oats, corn, barley, hops, potatoes,
sugar beets, hogs, cattle, horses.
Industry: Types--motor vehicles, machinery and equipment, iron, steel,
cement, sheet glass, armaments, chemicals, ceramics, wood, paper products,
and footwear.
Trade (2005): Exports--$79 billion (est.): motor vehicles, machinery,
iron, steel, chemicals, raw materials, consumer goods. Imports--$78
billion (est.). Trading partners--Germany (32%), Slovakia, Poland,
France, Austria, Italy, the Netherlands, Russia, U.K., China, United
States.
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| Tabular
representation of Economic indexes |
| SDDS
DATA CATEGORY AND COMPONENT |
Unit
Description |
Observations |
%
Change from Previous Period (Q2/06)to Latest period |
%
Change from Same Period Last Year to Latest period |
| Reference
Period of Latest Data |
Latest
Data |
Data
for Previous Period (Q2/06) |
| GDP
(Current prices) |
Millions
of CZK / Preliminary data |
Q3/06 |
813
125 |
812
421 |
0,1 |
8,4 |
| INDUSTRIAL
PRODUCTION INDEX |
Index,
2000 monthly average=100 / Preliminary data
|
6-Nov |
167,3 |
160,9 |
4,0 |
7,6 |
| EMPLOYMENT |
Monthly
average / Thousand of persons / Preliminary data
|
Q3/06 |
3
272 |
3
276 |
-0,1 |
1,3 |
| Stock
change balance |
Millions
of CZK / Preliminary data
|
Q3/06 |
28
048 |
40
947 |
x |
x |
| CONSUMER
PRICES |
Index
/ 1995 average = 100
|
6-Dec |
158,6 |
158,4 |
0,2 |
1,7 |
| PRODUCER
PRICES (Industrial Producer Price Index) |
Index
/ 1995 average = 100
|
6-Dec |
138,4 |
138,4 |
0,0 |
2,6 |
|
The above economic indices
show improvement, the GDP growth is over 8%, which is considered
to be the strongest indicator of the sound economic condition of
the Czech Republic. The Industrial Production index measures real
production output. It is expressed as a percentage of real output
with base year currently at 2002. The country produces & consumes
more goods & services than earlier.
GNP is the total value of all final goods and services produced
by a country's factors of production and that are sold on the market
in a given time period. The following graph reflects gradual increase
in the GNP & the effect of inflation on Czech Republic.
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Although emerging economies may be able to look forward to brighter
opportunities and offer new areas of investment for foreign and
developed economies, local officials of emerging market economies
need to consider the effects of an open economy on its citizens.
Furthermore, investors need to determine the risks when considering
investing in an emerging market economy. In the process of emerging,
the country will need to overcome hindrances i.e. international
competition, scarcity of resource and so on. The process of emergence
may be difficult, slow and often stagnant at times. And even though
emerging markets have survived global and local challenges in the
past, they had to overcome some large obstacles to do so.
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