4. ECONOMY (CZ)

The economy of the Czech lands traditionally belongs to the most developed in Europe. Gross domestic product reaches the developed countries of the world. The Czech economy is the 16th most powerful in the EU, ahead of Portugal, Greece and reaches the level of Italy and Spain. The Czech Republic is among 22 the most developed countries in the world. In March 2016, the Czech Republic achieved the lowest unemployment rate across the EU.

CURRENCY
The currency used in the Czech Republic is the Czech crown (CZK). It is issued by the Czech National Bank and the exchange rate of the currency is floating.

Current exchange rate of the crown (20.11.2017):

1EUR = 25,57 CZK
1$ = 21,70 CZK

Czech crowns

WAGES, SALARY RATIOS

The minimum wage in the EU is usually set at half the average wage, or is roughly
2 times the minimum subsistence level. In the Czech Republic this was not always the case, in 2007 a minimum wage was CZK 8 000 (EUR 316). It was gradually increased by the Government’s regulations until the present to CZK 12 200 (EUR 481).

Salary ratios are gradually improving in the Czech Republic. As GDP grows and unemployment is rising, wages are also rising. In the second quarter of 2017, the average gross monthly wage was CZK 29 346 (EUR 1158), which is more than
CZK 2 000 more than in the same period of 2016. Nevertheless, the average wage is less than 2/3. However, real wage growth is hampering rising inflation.

Average wage of a Secondary school teacher: 25 735 CZK (EUR 1007)

Average wage of a doctor: 58 000 Kč (EUR 2269)

Average wage of a nurse: 22 478 Kč (EUR 879)

SOCIAL SUPPORT, RETIREMENT

The Czech Republic distinguishes amonmg four types of pensions: old-age, disabled, widow’s (widower’s) and orphan’s.

The basic condition for receiving a retirement pension is 65 years of age, and 35 years of work, ie contributing to the pension fund. If these conditions are not met, the calculation of the amount of the pension is appropriately reduced.

In September 2016, the average old-age pension amounted to CZK 11 441 (EUR 436), men had on average CZK 12 643 (EUR 499) and women CZK 10 383 (EUR 410) – about 2,400,000 pensioners were paid. However, this figure was more than just over a third of all retirees.

Invalidity pension is granted in three degrees of disability according to the percentage of decline in working capacity.

Widow’s pension is granted on the basis of the death of one of the partners.

Orphan’s pension is granted to offspring under the age of 18, or to students aged under 26, who have lost one or both parents.

AVERAGE COUNTRY PRICES

Comparing prices of goods, energy, services, healthcare and others is very tricky. It is necessary to take into account the wages in the Czech Republic and abroad in euro. Some food and consumer goods are cheaper than in neighboring countries, which is used by border residents to make frequent purchases. However, many prices are comparable. The Czech Republic is cheaper, for example, beer, cigarettes, petrol, rent, medical care and medicines.

Fuel prices in the Czech Republic are still changing, while the current liter of diesel costs 29,30 CZK (EUR 1,15) and one liter of gasoline 30,30 CZK (EUR 1,19).

potatoes – 18 CZK/kg (EUR 0,71)

peppers – 90 CZK/kg (EUR 3,55)

tomatoes – 68 CZK/kg (EUR 2,68)

bananas – 30 CZK/kg (EUR1,18)

oranges – 30 CZK/kg (EUR 1,18)

chicken – 69 CZK/kg (EUR 2,72)

pork – 120 CZK/kg (EUR 4,74)

semi-skimmed milk – 19 CZK/l (EUR 0,75)

eggs 10 pieces – 55 CZK/ (EUR 2,17)

TYPICAL PRODUCTS OF THE COUNTRY

The most famous products of the Czech Republic include glass, whose production has been developed since the 13th century. It is lead crystal and cut glass. The Moser brand is the best of Czech glass.

In the world are also known porcelain with onion pattern and porcelain from Thun from Karlovy Vary, as well as products made of Czech garnet shaped by highly qualified work of grinders and goldsmiths – up to 3 500 models. The women of the whole world are also decorated with Czech jewelery.

The most famous and most popular products are Czech beer, especially Pilsner Urquell and Budweiser Budvar. Famous beverages include Carlsbad Becherovka – a liqueur called the 13th spring of the Karlovy Vary Spa and also Mattoni mineral water.Delicacy is Olomouc cheese that has been produced for over 500 years.


Pilsner Urquell	Budweiser Budvar	Carlsbad Becherovka

For engineering products, we have to mention Škoda cars with more than a hundred-year tradition of Škoda Holding a.s., which is a successor of the traditional name of Škoda Plzeň engineering factories. It manufactures a wide range of means of transport, e.g. the Škoda Ineken 10T tram rides in many large cities in the world.

From the point of view of export products, we must not forget the largest European piano producer – Petrof, and Bata shoe giant – 50 production plants in 68 countries.