Foreign economic relations are the most important factor in the development of an export-oriented Czech economy due to the limited domestic market. The main trading partners of the Czech Republic are Germany, Slovakia, Poland and other EU countries. Russia ranks 10th in Czech exports (2.7% share) and 3rd in Czech imports (6.4%).
The foreign trade turnover of the Czech Republic in 2008 amounted to 289.4 billion US dollars (growth by 23.6%), including Czech exports - 147.1 billion US dollars (growth by 23.4%) and imports - $142.3 billion (up 23.8%). The positive balance of foreign trade amounted to 4.8 billion US dollars.

The foreign trade of the Czech Republic in 2008 was influenced by a number of factors. The positive factors include the growth of industrial production, especially in the first half of the year, as a result of which the export of products of the manufacturing industries increased in the first half of the year by more than 11.2%, mainly due to the export of electrical and optical equipment, machinery and general-purpose equipment.

The largest trade surplus was with Germany - CZK 56.8 billion (USD 3 billion) and Slovakia - CZK 45.4 billion (USD 2.4 billion). Significantly (by 10.4 billion CZK (565 million USD) increased and amounted to 19.7 billion CZK (1 billion USD) the balance of trade with France. With the Netherlands, the negative balance of 0, CZK 3 billion was overcome and turned into positive, amounting to CZK 10.1 billion (US$548 million).

As a result of increased growth in imports of engineering products and industrial products, the negative balance in trade with China increased, which amounted to CZK 88.4 billion (USD 4.8 billion), and with Russia - CZK 45.9 billion (USD 2.5 billion) due to an increase in energy prices in the first half of the year.

The maximum contribution to the export of machinery products with high added value falls on vehicles, machine tools, road construction equipment (17.1%) and car engines (8%).

Czech exports are dominated by SMTK group 6 "processed products classified by materials" (20.0%), SMTK group 7 "machinery, equipment and vehicles" (53.5% of total Czech exports) and SMTK group 8 "miscellaneous finished products” (10.7%).

Czech goods are mainly exported to Germany, Slovakia and Poland. In comparison with the previous period, in 2008 the deliveries of machine-technical products of the 6th, 7th and 8th groups to these countries increased by an average of 3-7%.

Negative factors - a decrease in export prices by an average of 2.5% and an increase in energy prices by an average of 20.6% - led to a significant negative balance in the "mineral fuel" group. For this group of goods, despite a slight reduction in the volume of deliveries in physical terms, cost indicators increased by more than 20%.

In the imports of the Czech Republic, as before, a significant place was occupied by goods of a high degree of processing: group 6 - 20.3%; group 7 - 41.0%; Group 8 - 10.3%. Traditionally, the leading position was maintained by Germany, whose share in the import of the Czech Republic exceeds 27%, China moved to the second place, its share in the Czech import increased to 8.4%, the 3rd place of the Russian Federation (6.4%) in terms of imports to the Czech Republic is due, mainly with the supply of goods of the 3rd group of SMTK "mineral fuel". Energy exports from Russia to the Czech Republic account for 5.2% of the total Czech imports.

For 1990-2016 Czech exports in current prices increased by $142.0 billion (11.6 times) to $155.3 billion; the change was $0.35 billion due to a population growth of $0.27 million, and $141.6 billion due to an increase in per capita exports of $13,345.5. The average annual increase in Czech exports amounted to $5.5 billion, or 9.9%. The average annual increase in Czech exports in constant prices was at the level of 8.0%. The share in the world increased by 0.44%. The share in Europe increased by 1.3%. The minimum of exports was in 1991 (11.5 billion dollars). The maximum export was in 2014 (171.5 billion dollars).

During 1990-2016. per capita exports in the Czech Republic increased by $13,345.5 (11.3 times) to $14,640.3. The average annual increase in exports per capita in current prices was $513.3 or 9.8%.

The change in the export of the Czech Republic is described by a linear correlation-regression model: y=7.2x-14 322.6 , where y is the estimated value of the export of the Czech Republic, x is the year. Correlation coefficient = 0.947. Coefficient of determination = 0.896.

Czech export, 1990

Export of the Czech Republic in 1990, it amounted to 13.4 billion dollars, ranked 47th in the world and was at the level of exports of Luxembourg (12.9 billion dollars), exports of Iran (12.8 billion dollars). The export of the Czech Republic was more than the import of the Czech Republic by 0.95 billion dollars, the trade surplus amounted to 2.4% of the Czech GDP. The share of Czech exports in the world was 0.31%.

In 1990, it was $1,294.9, ranked 73rd in the world, and was on par with Belize's per capita exports ($1,304.3) and Saint Vincent and the Grenadines' per capita exports ($1,210.9). Export per capita in the Czech Republic was more than export per capita in the world ($817.2) by $477.7.

Comparison of exports of the Czech Republic and neighbors in 1990. The export of the Czech Republic was 3.2 times greater than the export of Slovakia (4.2 billion dollars), but was less than the export of Germany, the export of Austria (59.4 billion dollars) by 77.5%, the export of Poland (17.1 billion dollars) by 21.7 %. Export per capita in the Czech Republic was more than export per capita in Slovakia ($794.0) by 63.1%, export per capita in Poland ($450.6) by 2.9 times, but was less than export per capita in Austria ( 7 693.5 dollars) by 83.2%, export per capita in Germany (5 108.2 dollars) by 74.7%.

Comparison of Czech exports and leaders in 1990. Czech exports were less than US exports ($551.9 billion) by 97.6%, German exports ($404.1 billion) by 96.7%, Japanese exports ($323.1 billion) by 95.9%, French exports ($265.4 billion) . dollars) by 95%, UK exports (247.1 billion dollars) by 94.6%. Export per capita in the Czech Republic was less than export per capita in Germany ($5,108.2) by 74.7%, export per capita in France ($4,534.7) by 71.4%, export per capita in the UK ($4,322.0) ) by 70%, per capita exports to Japan ($2,594.9) by 50.1%, per capita exports to the United States ($2,185.5) by 40.8%.

Export potential of the Czech Republic in 1990. With exports per capita at the same level as those of Austria ($7,693.5), the best neighbor, Czech exports would be $79.5 billion, 5.9 times the actual level. With per capita exports at the same level as Germany's per capita exports ($5,108.2), Czech exports would be $52.8 billion, 3.9 times the actual level. With per capita exports at the same level as European per capita exports ($3,064.2), Czech exports would be $31.7 billion, 2.4 times the actual level.

Export of the Czech Republic, 2016

Export of the Czech Republic in 2016 it was equal to 155.3 billion dollars, ranked 33rd in the world and was at the level of Danish exports (164.4 billion dollars). The export of the Czech Republic was more than the import of the Czech Republic by 14.6 billion dollars, the trade surplus amounted to 7.5% of the Czech GDP. The share of Czech exports in the world amounted to 0.75%.

Exports per capita in the Czech Republic in 2016 amounted to 14 640.3 dollars, ranked 33rd in the world and was at the level of exports per capita in Slovakia (15 602.7 dollars), exports per capita in Cyprus (15 432.1 dollars), exports per capita in Finland (15 269.5 dollars), exports per capita in Estonia (14,044.4 dollars), exports per capita in Kuwait (13,702.6 dollars). Export per capita in the Czech Republic was more than export per capita in the world ($2,784.3) by $11,856.0.

Comparison of exports of the Czech Republic and neighbors in 2016. The export of the Czech Republic was more than the export of Slovakia (84.9 billion dollars) by 82.9%, but was less than the export of Germany, the export of Poland (246.4 billion dollars) by 36.9%, the export of Austria (201.7 billion dollars) by 23 %. Export per capita in the Czech Republic was more than export per capita in Poland ($6,444.7) by 2.3 times, but was less than export per capita in Austria ($23,152.9) by 36.8%, export per capita in Germany (19 580.4 dollars) by 25.2%, export per capita in Slovakia (15 602.7 dollars) by 6.2%.

Comparison of Czech exports and leaders in 2016. Czech exports were less than US exports ($2,214.6 billion) by 93%, Chinese exports ($2,197.9 billion) by 92.9%, German exports ($1,603.9 billion) by 90.3%, and Japanese exports (797.5 billion dollars) by 80.5%, UK exports (739.2 billion dollars) by 79%. Export per capita in the Czech Republic was more than export per capita in the UK ($11,236.0) by 30.3%, export per capita to the USA ($6,873.7) by 2.1 times, export per capita to Japan ($6,243.0) ) by 2.3 times, export per capita in China ($1,566.0) by 9.3 times, but was less than export per capita in Germany ($19,580.4) by 25.2%.

Export potential of the Czech Republic in 2016. With exports per capita at the same level as those of Austria ($23,152.9), the best neighbor, Czech exports would be $245.7 billion, 58.1% more than the actual level. With per capita exports at the same level as Germany's per capita exports ($19,580.4), Czech exports would be $207.8 billion, 33.7% more than the actual level.

Export of the Czech Republic, 1990-2016
yearexport, billion dollarsexports per capita, dollarsexport, billion dollarsexport growth, %share of exports in GDP, %share of the Czech Republic, %
current pricesconstant prices 1990in the worldin Europein Eastern Europe
1990 13.4 1 294.9 13.4 33.2 0.31 0.60 6.6
1991 11.5 1 107.5 12.6 -6.0 38.8 0.26 0.52 7.1
1992 13.9 1 342.1 13.8 9.5 40.2 0.27 0.53 3.3
1993 16.3 1 573.2 16.0 15.8 40.3 0.33 0.70 5.8
1994 17.7 1 710.5 16.6 3.8 37.4 0.32 0.70 7.9
1995 24.1 2 331.5 19.7 18.8 40.6 0.38 0.80 9.7
1996 25.7 2 479.6 20.2 2.5 38.4 0.38 0.82 10.8
1997 25.0 2 418.2 21.7 7.6 40.6 0.36 0.80 10.3
1998 28.1 2 718.4 23.8 9.7 42.3 0.41 0.87 11.8
1999 27.8 2 701.1 25.1 5.2 43.0 0.39 0.86 12.0
2000 29.7 2 887.2 28.8 14.8 48.3 0.37 0.88 10.7
2001 33.1 3 223.3 31.5 9.5 49.1 0.43 0.97 11.3
2002 37.0 3 605.4 31.8 0.92 45.2 0.46 1.0 11.4
2003 46.7 4 564.0 34.6 8.8 47.1 0.50 1.1 11.5
2004 68.3 6 672.8 44.9 29.7 57.4 0.60 1.3 12.5
2005 84.7 8 261.1 53.0 18.2 62.3 0.66 1.5 12.6
2006 101.3 9 840.8 60.6 14.3 65.3 0.68 1.5 12.3
2007 125.7 12 133.9 67.3 11.0 66.6 0.73 1.6 12.3
2008 149.0 14 297.6 70.1 4.2 63.4 0.75 1.7 11.7
2009 121.0 11 537.9 63.3 -9.8 58.8 0.76 1.8 13.0
2010 137.0 13 002.4 72.6 14.8 66.2 0.72 1.8 12.2
2011 162.5 15 379.5 79.3 9.2 71.3 0.72 1.8 11.6
2012 158.0 14 920.2 82.7 4.3 76.2 0.69 1.8 11.2
2013 161.0 15 193.5 82.8 0.19 76.9 0.69 1.8 11.1
2014 171.5 16 185.6 90.0 8.6 82.5 0.72 1.8 11.9
2015 151.4 14 280.1 95.4 6.0 81.0 0.71 1.8 13.0
2016 155.3 14 640.3 99.8 4.5 79.5 0.75 1.9 13.9

picture. Export of the Czech Republic, 1990-2016

picture. Exports per capita in the Czech Republic, 1990-2016

picture. Export growth in the Czech Republic, 1990-2016

picture. Share of exports in Czech GDP, 1990-2016

Comparison of exports of the Czech Republic and neighboring countries

Exports per capita in the Czech Republic and neighboring countries, relative to the Czech Republic
The country1990 2000 2010 2016

Of particular importance for the Czech Republic, as a relatively small state with a diversified and at the same time specialized economy that needs to import many types of raw materials, are foreign economic relations. The maintenance of stable economic growth rates, the implementation of progressive structural changes, and an increase in the efficiency of the national economy largely depend on the successful development of foreign economic relations. The development of economic cooperation between the Czech Republic and neighboring countries is facilitated by the fact that, in terms of their sectoral structure, the economies of the Czech Republic and each of these countries complement each other to a certain extent, their geographical proximity, the presence of main railways and roads connecting them with each other is also important. The profitability of economic cooperation with these countries is also determined by the fact that the majority of enterprises in the key sectors of heavy industry are concentrated near their borders, so the distances between suppliers and consumers are small and sometimes measure only a few tens of kilometers, which significantly reduces transport costs. Thus, the peculiarities of the sectoral and territorial structure of the national economy, combined with close proximity, create great opportunities for cooperation in the most diverse areas of economic life.

During the years of the existence of the socialist camp, the main mutually beneficial economic ties of the Czech Republic developed with the socialist countries, which made it possible to solve the problem of creating the necessary prerequisites for the stable and uninterrupted development of the national economy. The diverse ties of the Czech Republic with the socialist countries along the line of specialization of co-production in the leading branches of industry, the presence of a guaranteed sales market contributed to the organization of large-scale production, strengthening the position of the Czech Republic in the system of the international socialist division of labor as the most important manufacturer and exporter of machinery and equipment.

In a wide range of exports of engineering products, complete equipment prevailed - rolling mills for ferrous and non-ferrous metallurgy, heavy power equipment, equipment for sugar and breweries. Metal-cutting machines, trucks and cars, tractors and electric locomotives are also exported.

The import of the Czech Republic is dominated by fuel and raw materials, mainly oil and gas complex. Crude oil and natural gas enter the Czech Republic mainly from the Russian Federation through pipelines built as early as within the framework of the Council for Mutual Economic Assistance of the countries of the socialist camp. Machinery and equipment are also imported in large quantities. The import of advanced technology contributes to the accelerated development of the country's industry.

After the collapse of the socialist camp, the Czech government took a new political course and made the main bet on the development of bilateral relations with the countries of Western Europe and on attracting foreign investment into the Czech economy (mainly Germany, France and Italy). Many Czech enterprises were sold to foreign corporations, which allowed the Czech economy to be more closely integrated into the overall economy of Western Europe. In 1993, exports amounted to 12.6 billion US dollars, imports - 12.4 billion dollars.

The Czech Republic ranks 48th in the world economy, being a member (according to the Czech Ministry of Industry and Trade) of more than 60 international economic and financial organizations. The Czech industry produces about 0.3% of the world's gross output. More than 70% of large enterprises in the Czech Republic are owned in whole or in part by transnational and foreign firms. The Czech Republic is one of the world's major exporters of engineering products and, in particular, is among the top three global car manufacturers per capita. The most important contribution to the development of the Czech economy is made by foreign trade in goods and services. The share of the Czech Republic in world foreign trade is: for export - 0.5%, for import - 0.6%. The Czech Republic provides about 0.3% of the world's gross output. In 2012, the main trading partners of the Czech Republic were the EU countries, which accounted for 72.9% of the country's foreign trade turnover (which is 0.8 percentage points less than in 2011). The foreign trade turnover of the Czech Republic in 2012 decreased by 5.6% and amounted to 297.4 billion US dollars (in 2011 - 313.6 billion US dollars). It should be noted that the indicators of the foreign trade of the Czech Republic with the countries of the world in national currency differ significantly due to fluctuations in the exchange rate of the Czech crown against the US dollar in 2011-2012. Thus, in 2011 the average annual exchange rate of the US dollar was 17.7 CZK. kroons, and in 2012 - 19.6 CZK. crowns In this regard, the change in foreign trade indicators of the Czech Republic in 2012 compared to 2011 in the national currency is 10-11% higher than in US dollars. Since the Czech economy has a clear export-oriented focus with the main focus on partnership within the European Union, its economic situation is significantly influenced by the state and pace of development of the EU countries, and above all Germany, which is the largest trade and investment partner of the Czech Republic. The share of Russia in 2012 in the total foreign trade of the Czech Republic was 4.7% (5th place). The volume of bilateral trade last year increased by 6% and amounted to 14.12 billion US dollars (in 2011 - 13.3 billion US dollars). The share of exports in relation to the GDP of the Czech Republic is about 74.7% (in 2010 - 62.8%), the share of imports in relation to GDP is about 69.8 (in 2010 - 60.6%). The main part of Czech exports (54.2%) falls on machinery, equipment and vehicles (SMTK group 7). In the structure of Czech imports, machinery, equipment, vehicles (SMTK group 7) account for 41.3%, processed products (SMTK group 6) - 17.8%. The structure of exports and imports of the Czech Republic in 2012 did not undergo significant changes compared to 2011. At the same time, it should be noted the continued growth in the share of machinery, equipment and vehicles (SMTK group 7) in Czech exports (growth by 1.4 percentage points), achieved mainly due to an increase in the production and supply of cars and spare parts for them. The decline in foreign trade is one of the alarming symptoms of the state of the Czech economy. In this regard, the issue of expanding and diversifying exports is one of the most relevant in the economic block of activities of the Czech Government. In order to improve the situation in the field of foreign economic activity, the Czech Cabinet of Ministers in March 2012 adopted a national Export Strategy. In addition to the EU member states, the strategy identifies 12 countries (in alphabetical order) as priority foreign markets for its products: Brazil, Vietnam, India, Iraq, China, Kazakhstan, Mexico, the Russian Federation, Serbia, the USA, Turkey and Ukraine. In addition, 25 countries of increased foreign economic interest of the Czech Republic were identified: Angola, Argentina, Australia, Azerbaijan, Belarus, Ghana, Egypt, Israel, Canada, Colombia, Morocco, Moldova, Nigeria, Norway, Peru, Saudi Arabia, Senegal, Singapore, Thailand, Chile, Croatia, Switzerland, Ethiopia, South Africa, Japan.

Introduction.
1. The role and place of the national economy in the system of world economic relations.

2. Foreign trade and foreign economic relations of the Czech Republic.
3. The role of foreign countries in the Czech economy.
4. Trade and economic relations between
Russia and the Czech Republic.
Conclusion.
Bibliography

Introduction.

Official name: Czech Republic
The territory of the country is 78,864 km 2 and is administratively divided into 13 regions (14 subjects - the capital city of Prague). The Czech Republic borders on Germany, Slovakia, Austria and Poland. The official state language is Czech. The monetary unit is the Czech crown. State device. The Czech Republic is a parliamentary republic. The functions of the legislative power are exercised by the Parliament of the Chechen Republic, which consists of two chambers: the upper chamber - the Senate and the lower chamber - the Chamber of Deputies. The executive power is represented by the Government. The head of state and commander in chief is the President, who is elected for 5 years by the Parliament and has limited constitutional powers. Vaclav Klaus was elected President of the Czech Republic.
The Czech Republic is considered the richest country in Central Europe, the most industrialized and with the smallest share of agriculture in its gross domestic product. According to 1997 data, per capita GDP in the Czech Republic was $5,050 (for comparison: $4,415 in Hungary and $3,512 in Poland). Among the post-communist states, the Czech Republic currently ranks second in terms of living standards after Slovenia.
The most developed sectors of the Czech industry, the state of which determines the overall level of the country's economic situation, are the automotive industry, mechanical engineering, metallurgy, energy, chemical and light industries.
The production capacity of the Czech Republic exceeds the capacity of its domestic market, so a significant part of the country's gross domestic product is export-oriented. At the same time, the Czech industry began to focus on the production of goods that do not require large electricity consumption. At the same time, due to the lack of a sufficient mineral resource base in the country, many types of energy and raw materials have to be imported, which determines the high degree of dependence of the Czech economy on foreign economic factors.

1. The role and place of the national economy in the system of world economic relations.

The Czech Republic (CR, Czech Republic) is one of the industrialized countries of Central Europe. The country covers an area of ​​78,866 sq. km (0.05% of the size of the total world territory).

The population of the country, as of June 30, 2010, was 10,515,818 people (approximately 0.2% of the total world population).

The Czech Republic ranks 48th in the world economy, being a member of more than 60 international economic and four financial organizations.

The industry of the Czech Republic provides about 0.3% of the world's gross output. More than 70% of large enterprises in the Czech Republic are wholly or partly owned by multinational and foreign companies.

In general, the position of the Czech economy is largely determined by the state and development of its foreign economic relations. Traditionally, the Czech economy is oriented towards foreign markets, where most of the country's GDP is realized. The Czech Republic belongs to the countries with a market economy, closely related to the economies of the main EU countries. As a result of structural reforms carried out over the past 15 years and a significant influx of foreign investment, the Czech industry has been significantly modernized, and the economy as a whole has become less material and energy intensive.

The most important contribution to the development of the Czech economy is made by foreign trade in goods and services. The share of the Czech Republic in world foreign trade is: for export - 0.5%, for import - 0.6%. The main trading partners of the Czech Republic are the EU countries, which account for more than 74% of the country's foreign trade turnover in the first 8 months of 2010. The main trading partner of the Czech Republic is Germany, whose share in the trade turnover reaches 28%, the share of Russia in the total volume of foreign trade of the Czech Republic is 4.0%, which is the 10th indicator among the countries of the world.

The main factors that influenced in 2009-2010. on the economic situation in the Czech Republic, were: the global financial and economic crisis; slowdown in economic growth, and then its consistent recovery in the EU countries, the main trade and economic partners of the Czech Republic; a significant range of fluctuations in the exchange rate of the Czech crown against the euro and the dollar.

The development of the Czech economy is largely determined by the state and development of its foreign economic relations. Traditionally, the Czech economy has been oriented towards foreign markets, where most of the country's GDP is realized. If until recently the Czech Republic was classified as a transition economy, then with its accession to the European Union and the consistent intensive integration of almost all industries into the world economy, the Czech Republic can be classified as a market economy, closely related to the economies of the main EU countries. Moreover, as a result of structural reforms carried out over the past 15 years and a significant influx of foreign investment, the Czech industry has been significantly modernized, and the economy as a whole has become less material and energy intensive.
2. Foreign trade and foreign economic relations of the Czech Republic.
Of particular importance for the Czech Republic, as a relatively small state with a diversified and at the same time specialized economy, which needs to import many types of raw materials, are foreign economic relations. The maintenance of stable economic growth rates, the implementation of progressive structural changes, and an increase in the efficiency of the national economy largely depend on the successful development of foreign economic relations. The development of economic cooperation between the Czech Republic and neighboring countries is facilitated by the fact that, in terms of their sectoral structure, the economy of the Czech Republic and each of these countries complement each other to a certain extent, their geographical proximity, the presence of main railways and roads connecting them with each other is also important. The profitability of economic cooperation with these countries is also determined by the fact that the majority of enterprises in the key sectors of heavy industry are concentrated near their borders, so the distances between suppliers and consumers are small and sometimes measure only a few tens of kilometers, which significantly reduces transport costs. Thus, the features of the sectoral and territorial structure of the national economy, combined with close proximity, create great opportunities for cooperation in various areas of economic life. for the stable and uninterrupted development of the national economy. The diverse ties of the Czech Republic with the socialist countries along the line of specialization of co-production in the leading branches of industry, the presence of a guaranteed sales market contributed to the organization of large-scale production, strengthening the position of the Czech Republic in the system of the international socialist division of labor as the most important manufacturer and exporter of machinery and equipment.
In a wide range of exports of engineering products, complete equipment prevailed - rolling mills for ferrous and non-ferrous metallurgy, heavy power equipment, equipment for sugar and breweries. Metal-cutting machines, trucks and cars, tractors and electric locomotives are also exported.
Czech imports are dominated by fuel and raw materials, mainly from the oil and gas complex. Crude oil and natural gas enter the Czech Republic mainly from the Russian Federation through pipelines built as early as within the framework of the Council for Mutual Economic Assistance of the countries of the socialist camp. Machinery and equipment are also imported in large quantities. The import of advanced technology contributes to the accelerated development of the country's industry.
After the collapse of the socialist camp, the Czech government took a new political course and made the main bet on the development of bilateral relations with the countries of Western Europe and on attracting foreign investment into the Czech economy (mainly Germany, France and Italy). Many Czech enterprises were sold to foreign corporations, which allowed the Czech economy to be more closely integrated into the overall economy of Western Europe.
Among the main trading partners of the country are Germany, Slovakia, Australia, Russia, Italy, Poland, France. Their share in the foreign trade turnover is 70%.
The basis of Czech exports are machinery and mechanisms (20.2%), vehicles (16.3%), electrical equipment (14.2%), steel and steel products (9%), rubber and plastic products (6%), furniture (3.1), mineral products (3%), glass products (2.2%), wood products (1.6%), optical instruments (1.5%), paper and cardboard (1.5%) ), aluminum and products from it (1.2%). Attention is drawn to the fact that the structure of exports is a mirror image of the structure of the industry of the host country.
Favorable terms of trade, in turn, contributed to the formation, for the first time in the history of the Czech Republic, of a trade surplus of $1.7 billion. Surplus balance of services amounted to 801.6 million dollars. The main reason for the significant growth in exports of goods and services is the significant inflow of foreign investment in previous years.
In December 1992, Poland, the Czech Republic, Slovakia and Hungary concluded the Central European Free Trade Agreement (CEFTA), which entered into force on March 1, 1994. The agreement provides for the establishment of a free trade area for manufactured goods by 2001. For agricultural products, liberalization is limited character. Later, Slovenia, Romania and Bulgaria also became members of CEFTA. The most developed sectors of the Czech industry, the state of which determines the overall level of the country's economic situation, are the automotive industry, mechanical engineering, metallurgy, energy, chemical and light industries.
The production capacity of the Czech Republic exceeds the capacity of its domestic market, so a significant part of the country's gross domestic product is export-oriented. At the same time, the Czech industry began to focus on the production of goods that do not require large electricity consumption. At the same time, due to the lack of a sufficient mineral resource base in the country, many types of energy and raw materials have to be imported, which determines the high degree of dependence of the Czech economy on foreign economic factors.
The Czech Republic is a member of 62 international economic and four financial organizations.
In terms of living standards, the Czech Republic is approaching the economically developed countries of the European Union. The average income per person per month is 10,300 crowns (about $500).
2. Main trends and prospects for the impact of the development of the world economy on the political and economic situation in the Czech Republic
The main external factors that influenced the economic situation in the Czech Republic in 2007 were:
a) the continuing rise in world energy prices
As a result of the continuing rise in energy prices in the Czech Republic in 2007, the cost of production increased, as did the prices for petroleum products, electricity, transport and public utilities for the population. Since the beginning of 2008, the cost of electricity has increased by 9.1%, gas - by 7.5%, heating - by 10.3%, travel by public transport - by 30%, gasoline - by 6-9%.
b) consequences of industrial privatization
In 2007, Czech companies paid the highest dividends in history - about 150 billion crowns (about 7.5 billion US dollars), which is 10% more than in the previous year. More than two thirds of the said amount (more than 5 billion US dollars) was transferred to the accounts of foreign investors. At the same time, the increased demand for credit and investment resources in the world market and the practical completion of privatization in the Czech Republic influenced the activity of foreign investors in the Czech Republic. The volume of direct foreign investments in 2007 decreased in comparison with the previous year by 8% and amounted to 7.1 billion US dollars. According to the forecasts of the Czech National Bank, this trend will continue in the future, which may affect the financial situation in the country. According to the World Bank, business conditions in the Czech Republic have worsened. The country currently ranks 56th in the world on this indicator, down four points from the previous year. In terms of corruption, the Chechen Republic ranks 41st in the world. The country lacks an effective mechanism for monitoring budget-financed government orders, and investigations into cases of corruption are often protracted.
c) the situation in the world financial and stock markets

4. The role of foreign countries in the Czech economy.
Foreign investment. One of the main tasks of the state policy of the Czech Republic is the creation of a favorable external environment - for investments in various sectors of the economy. Investments in banks, energy, extractive industries, petrochemicals, pharmaceuticals and telecommunications do not pose a serious risk even for the most cautious investors, which is a consequence of the stable political situation in the country.
Having achieved economic stabilization, the Czech Republic becomes the center of interest for foreign direct investment. In accordance with the Commercial Code of the Czech Republic, the investments of foreign entrepreneurs are protected from expropriation, and various interstate agreements on the support and protection of foreign investments, on economic cooperation, on the avoidance of double taxation create equal conditions for entrepreneurial activity, both for Czech market entities and for foreign ones.
One of the important conditions for the further inflow of foreign investment is also the clarity and stability of the customs legislation. After foreign investors criticized the lack of flexibility in the customs system, the government of the Czech Republic issued a decree setting new import tariff rates for goods subject to further processing and new conditions for their implementation. This order is beneficial, first of all, to joint ventures with the participation of foreign property. By this order, imported goods subjected to further processing, assembly or assembly of finished products manufactured by customers were subject to zero customs liberalization in the field of investment activities of local organizations abroad and foreign organizations in the Czech Republic:
A) foreigners can freely open foreign currency accounts in Czech banks (and so can Czech citizens). Foreigners in the Czech Republic can buy foreign funds for Czech currency and vice versa, acquire other foreign currency, acquire real estate to a certain extent, import and export Czech and foreign currency, unless certain restrictions are provided for by the law on foreign currency. They can freely dispose of the foreign currency in their accounts, including their investment in the form of direct or portfolio investments in the Czech Republic.
B) Czech entities can make investments abroad in the form of direct investments (here only the fulfillment of the information obligation is sufficient), or in the form of other than direct investments, however, in this case, the permission of the relevant financial institution is required.
In 2005, the net inflow of foreign direct investment into the Czech economy increased by 2.5 times compared to 2004. At the same time, 70% of the funds came from the acquisition of shares of Czech enterprises by foreign companies.
Approximately half of the funds were directed to the implementation of investment projects in the field of transport and telecommunications, 29.5% to the financial and business services sector, 16.8% to the processing industry, primarily in the traditional sectors of the Czech economy - automotive and metalworking, and also the production of plastic and rubber products, chemical products, electrical equipment, food products.
Traditionally, investors from the EU-15 countries showed the greatest interest in investing in the Czech economy during this period (87% of total investments). In terms of capital investments, Spain came out on top (44.7% of the total investment), ahead of large investors - the Netherlands (18.1%), Germany (10.1%), Austria (4.1%), and Poland ( 6.4%).
The leader among investors last year was the Spanish company Telefonica, which acquired from the Czech state for 82.6 billion kroons (about $3.4 billion) a controlling stake in the Czech Republic's largest telecommunications company, Cesky Telecom.
At the end of 2005, the external debt of the Czech Republic was estimated at $45.8 billion, which is $488.5 thousand higher than at the end of 2004. About 69% of the total debt falls on long-term obligations to foreign creditors, including 19.6% - government obligations. The main reason for the growth is the issuance of long-term government bonds in foreign markets in the amount of almost 30 billion CZK and the receipt of a loan from the European Investment Bank for the development of transport infrastructure. External debt amounted to approximately 38.4% of the host country's GDP.
5. Trade and economic relations between Russia and the Czech Republic.
Trade and economic relations between Russia and the Czech Republic are developing successfully. The volume of mutual trade remains at a stable level. Interregional cooperation is actively developing. The participation of entrepreneurs in exhibitions and fairs on the territory of the two countries is expanding. Cooperation in the investment sphere is deepening. At the same time, a certain obstacle to the constructive and dynamic development of bilateral ties is the lengthy procedure for obtaining entry visas for citizens of both countries when they travel on business.
According to the results of last year, the trade turnover between the Czech Republic and Moscow amounted to about 450 million dollars, of which more than 300 million accounted for the import of Czech goods.
Cooperation is developing in several directions. There are traditional links between the mayor's offices of Prague and Moscow. He
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