6th June 2016

OECD: Czech Republic needs new reforms to boost productivity, accelerate convergence with the most advanced countries

The Czech Republic needs new reforms to boost productivity, improve economic growth and accelerate convergence toward the levels of income and well-being seen in the most advanced European countries, according to a new OECD report. The Survey, which coincides with the 20th anniversary of the Czech Republic’s accession to the OECD,  projects GDP growth of 2.4% this year and 2.6% in 2017.

“The Czech Republic is doing well, with strong economic growth, low unemployment, healthy public finances and high levels of well-being,” OECD Secretary-General Angel Gurría said. “While GDP per capita is the highest among the countries of Central and Eastern Europe, convergence toward the OECD average has stalled. To accelerate the catching-up process, the Czech Republic needs to better utilise the domestic drivers of productivity growth, which means allowing successful firms to grow, supporting domestic innovators and ensuring value-for-money from public spending.”

In an interview for the Czech Television, Mr. Gurria said that higher productivity is possible in any activity and even in the public sector, including tax administration, health care, as well as in the teacher profession. As for the pension system, in the Czech Republic, "the elderly will be poor" and that is a problem we need to focus on. Contributions to the pension system need to be higher. It is not a problem of the Czech Republic only, though. "We are not telling the Czech government what to do, we are saying: Look at you. Do you like what you see? And then we say: Compare yourself with other countries... Your story is a success story - and Czech people should be proud of it - but the question is how to go forward, how to close the distance between the Czech Republic and the countries with higher living standard."

Read the press release and the report Economic Survey of Czech Republic 2016 here. Summary in Czech by the Confederation of Industry and Trade of the Czech Republic is available here.

Click also on Eurostat data Government expenditure by function for Czech Republic, 2014 (% of GDP).





Members of the American Chamber of Commerce in the Czech Republic