The Czech economy after the financial crisis

Abstract

Since joining the European Union (EU) in 2004, The Czech economy development has been influenced by a number of important factors. Among the key factors which have affected not only the Czech economy belongs doubtlessly the financial and economic crisis. The decline of the Czech economy measured in GDP growth rate in constant prices could be considered as long-lasting and relatively deep. According to the statistics, real GDP didn’t reach pre-crisis levels by the end of the year 2014. The Czech economy currently experiences a strong economic rebound; its growth point to range between 4 and 5%. These values were recorded for the last time in the years preceding the crisis, especially at the end of 2008. Robust economic growth in 2015 is considered as one of the best assessed results in EU, whereas only Malta’s economy grew faster. Obviously, this is due to exceptional factors, notably keeping the exchange range undervalued, stunning fall in oil prices and drawdown of European Funds, according to the analysts. At the same time, the increase of the household consumption expenditure strengthen the growth. This article includes an analysis of the Czech macroeconomic development in the period after the year 2008. At first, the comparative research of the Czech economic development for seven last years was accomplished based on available macroeconomic indicators. The development is captured in the time series analysis. Additionally, this article encompasses comparison with macroeconomic environment in states EU-15 and EU-28. In conclusion, we identify key consequences of financial crisis in the macroeconomic context (the impact on the labour market, standard of living, economic performance) and we assess the current economic condition of the Czech Republic.