A relatively stable economy
The Czech Republic is located in Central Europe. There are 10.6 million inhabitants, with 1.3 million living in the capital city of Prague.
The present-day Czech Republic came into existence in January 1993 after the “velvet divorce” whereby the previous Czechoslovakia split into its two constituent parts.
The Czech economy has been growing steadily since 1993. After the country joined the European Union in 2004, its exports to the European Union, especially to Germany, increased. The country was affected by recessions in 2012 and 2013, but has recently recovered.
In 2017, the unemployment rate was low at 2.8 per cent. However salaries are relatively low in relation to the rising cost of living. Rates of unemployment are higher in areas outside Prague, in coal and steel producing areas, among older workers and those with fewer skills.