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Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.
A carbon intensive energy system in the Czech Republic contributes to one of the highest ratios of greenhouse gas (GHG) emissions to GDP in the OECD.
The Czech fiscal position is generally sound and policy making is prudent. However, the fiscal framework was not strong enough to contain spending in the upturn and it would benefit from independent budget oversight.
The Czech economy’s export-driven recovery is slowing as weak activity Europe curbs exports. Swift implementation of new reforms is needed to ensure sustainable, inclusive long-term growth and better resilience to external shocks, according to the latest Economic Survey of the Czech Republic.
With the Czech economy’s export-driven recovery slowing, swift implementation of new reforms is needed to ensure sustainable, inclusive long-term growth and better resilience to external shocks, according to OECD's Angel Gurría.
The post-crisis recovery in Czech Republic is moderate. More rapid real convergence is dependent on the transition to an innovative, skill based and more energy efficient economy. Enhancing efficiency of public sector spending and providing incentives for better use of energy would be essential.
In 2008, the Czech government implemented a major overhaul of the personal income tax (PIT), replacing the previous progressive rate schedule with a single 15% rate levied on an enlarged base.
"The crisis brought to the fore that in a globalised economy, no single country has all the answers. Using our methods of peer learning, benchmarking and monitoring, the OECD can pave the way to build a stronger, more balanced and sustainable economic growth" said Angel Gurría in a speech delivered at the Prague University.
The economy has moved into the first stages of recovery, but major challenges lie ahead: assuring medium- and long-term fiscal sustainability, further advancing pro-growth tax reform and building on recent reforms to improve the business environment.
This chapter assesses recent regulatory reforms and considers the scope for future initiatives in this area, as well as at other ways in which the authorities could do more to enhance the business environment.