Czech Republic: Selected Issues
IMF Staff Country Reports, June 13, 2019
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Bibliographic details
- Published: June 13, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498319423.002
External risk exposure and trade integration
- The Czech Republic is a small open economy that has become increasingly reliant on export-driven growth over the last three decades.
- Given the high integration of the Czech Republic into global value chains, it is crucial to take supply chain linkages into account when assessing the impact of trade shocks.
- Domestic value-added in foreign exports as a share of gross exports in the Czech Republic is higher than the average share of the European Union 28.
- Services have a relatively low contribution to value-added in gross exports.
Sectoral concentration and exposure to Germany
- The exposure to Germany is even more pronounced at the sectoral level.
- Manufacturing of machinery and transportation vehicles account for a large share of exports and imports in the Czech Republic.
- Lower demand in Germany could have sizable effects on the Czech economy.
Trade-dispute scenarios and expected impacts
- Although the impact of the US-China trade disputes on the Czech Republic would likely be limited, a hard Brexit scenario could have sizable effects.
- Assessment of trade shocks requires tracing direct and indirect exposures through global value chains and supply chain linkages.
Content in this bundle
- Czech Republic: Selected Issues; IMF Country Report No. 19/161; May 28, 2019