2020 OECD Economic Surveys: Czech Republic 2020

image of OECD Economic Surveys: Czech Republic 2020

After a long period of impressive convergence to the OECD average incomes, the Czech Republic is now battling the social and economic consequences of the COVID-19 pandemic. The economy contracted due to strict containment measures, but the authorities extended generous support to maintain incomes, employment and liquidity. The economic recovery is expected to be gradual. The crisis heightens the need to continue addressing long-term challenges with disappointing productivity growth, low labour participation of mothers, pressures due to population ageing and high energy and carbon dependence. Sustainable growth will raise living standards and help restore fiscal and monetary policy space. In addition, despite overall low inequality, there is considerable regional variation in incomes and poverty, and the gaps have grown over time. The Czech Republic suffers from a highly fragmented subnational government with the highest number of municipalities per head in the OECD. The resulting lack of capacity at the local level impacts the quality of public services and impedes the uptake of effective development projects.


English Also available in: French

Expenditure per capita is higher in small municipalities


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error