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Czech republic

 

   Czech

 

The Czech Republic is a democratic country situated approximately in the heart of Central Europe. It is a landlocked country 326 km from the Baltic and 322 km from the Adriatic sea. It shares borders with Germany, Poland, Austria and Slovakia.

The divide between the two principal mountain systems in Europe - the Hercynian and Alpine-Himalayan - runs through the Czech territory.

 

Fact sheet:

 

Country Name

 Czech republic

Location

 Central Europe

Territory 

 78,865 km2

Population

 10,31 million

Unemployment

 7,1 %  (Q3 2006)

GDP growth

 6,0 %  (2005)

Average gross monthly
salary

 639 EUR (2005)

Social security paid by employer

 35,0%

Capital City

 Prague

Full member
 of the EU

 since 1st of May 2004

Currency:

Czech Koruna (CZK)
 average yearly exchange rates for 2005
1 USD = 23,947 CZK          1 EUR = 29,784

International Telephone
Calling Code:

 + 42

Electricity:

  230V, 50 Hz

Time zone

 Central European Time (GMT - 1, GMT -2)

Climate

Mild continental; temperate, a mixture of oceanic and continental, the average winter temperature is 5 degrees C, the average summer temperature is 20 degrees C

 

Economy:

GDP growth in Czech economy increased by 4,3% in 2004 and in 2005 increased by 6,1%. The trend of acceleration in the growth dynamics existed also during the year. In fourth quarter of 2005 was growth of 6,9%. Growth has been driven by investment and also by export growth.

Faster growth in exports, when compared with imports, became more pronounced in the development of foreign trade. Export in constant prices increased by 11,1% and imports by 4.8%.  Export in 2005 was 78,21 billion USD and import was 76,53 billion USD.

The inflation rate reached 1,9% in December 2005 and confirmed low inflation environment existing in the domestic economy and had a better result then in other EU countries.

 

Investment:

The Czech Republic is one of the most advanced transition economies and one of ten new members joining the European Union on 1 May 2004. Economic policy is consistent and predictable. A strong and independent Central Bank (Czech National Bank) has maintained an extraordinary degree of currency stability since 1991.

EU legislation has been adopted. Commercial, accounting and bankruptcy laws are compatible with Western standards. The Czech koruna is fully convertible. All international transfers (e.g. profits and royalties) related to an investment can be carried out freely and without delay.

Unemployment has stabilized at around 10% and is expected to remain at that level throughout 2003 and 2004. The economically active population continues to grow. The official working age is 15-57 years for women and 15-60 years for men.

No limitations exist concerning the distribution and expatriation of profits by Czech subsidiaries to their foreign parent companies, other than the obligation of joint stock and limited liability companies to generate a mandatory reserve fund and pay withholding taxes.

Any company registered in the Czech Republic may acquire real estate without any limitations. Any purchase or transfer of real estate must be registered with the relevant Land Register. The real estate transfer tax is 3 % of the selling price or the officially assessed value, whichever is greater, and is paid by the seller.

     
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