Pulled by German boom: 2010 in Czech economy

Czech economy recovering


The year 2010 was a good year for the Czech economy, which started to recover after contracting by 4.1 percent in 2009. It is estimated that the Czech economy grew by 1.7 percent in 2010, however this is mostly a by-effect of the surprisingly good performance by the German economy.

Generally, the speeding German freight train pulled all Central Europe from recession. However, being pulled by somebody means that you cannot overtake your rescuer.

In addition, while the 2010 recuperation was based on exports, the domestic household consumption must increase in 2011 in order to stabilize the economic recovery.

While the Czech republic generally maintains very low poverty rates, unemployment remains a problem – as in many other states of Europe –  and obstacle to the continuing recovery.

Czech automaker Skoda, a subsidiary of German Volkswagen, had a good year. It is increasingly evident that the car manufacturer is going to export more and more to emerging markets (BRIC), with China already becoming a key market for Skoda.

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Tatra, a less known Czech car manufacturer which focuses on heavy track production, focuses on the same markets. Meanwhile, Czech Airlines started a process of restructuration in order to get back into black numbers.

Czech state-owned energy giant CEZ continued its expansion in 2010, but it is still facing a tough PR job to persuade the Czech public that it is not a state within a state.

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Economic recovery: Czech Rep lags behind Germany

2010: Czechs at the same level as East Germans in 1990

Booming China becomes key market for Czech Skoda Auto

Lost Generation: Young Czechs hit by unemployment

Czech economy grows 2.8 % in Q3, but jobs still scarce

More and more Czechs declare personal bankruptcies

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