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Economics
Once the model of communist-bloc market transition, the Czech Republic suffered through a
harsh recession in 1997-1998 due to political instability, a currency crisis and wide-spread
flooding. One key economic issue, poor governance in the enterprise and banking sectors,
has emerged and is being addressed. A nascent recovery initiated in mid-1999 has recently
accelerated, but requisite structural reform me-asures will detract from near term
performance. Robust infu-sions of foreign direct investment (FDI) and improving de-mand in
key EU export markets are expected to fuel the Czech recovery. While considered the
laggard amongst the first wave of EU candidate nations, the Czech Republic has nonetheless
completed 18 of the 31 required chapters and has targeted an aggressive accession target
of 2003.
Energy
The Czech Republic is a net energy importer. The main im-ports are oil and natural gas. In
1998 the Czech Republic imported an estimated 168,000 bpd of oil and 325 bcf
of na- |
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tural gas. The primary domestically produced energy
co-mes from coal and hydroelectric power.
The Czech Republic has very limited oil reserves, and therefore relies almost exclusively
on imported oil. Do-mestic oil production, which is extracted by Moravske naftove doly,
reached 4,000 barrels per day (bbl/d) in 1999 and is expected to hold steady in 2000.
Metals
The Czech Republic is important regional producer of industrial minerals, and construction
materials.
Historically, the Czech Republic has mined a wide range of nonferrous metals ores that
included antimony, cop-per, lead and zinc, tin and tungsten. Following the abo-lition of
central economic planning, uneconomic industrial activity was diminished or was ended
through subsidy reductions and/or abolishment. The only mining-related activity involving
nonferrous metals centered on gold exploration. Commercial activity for most metals was
limi-ted to foreign trade. |
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