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The Czech Republic: a mostly free economy

The Czech Republic has one of Central Europe’s most developed and industrialized economies. The country imposes few regulations on companies, thus most of the trade and business are based on contractual freedom. Also, the private sector is expanding and currently represents more than 85 % of the GDP in 2004.

The Czech Republic’s top income tax rate is 32 percent. The top corporate income tax rate is 31 percent. The black market remains at a high level. The Czech Republic is one of the largest exporters of counterfeited products and has a high level of corruption.

2004 Index of Economic Freedom

Rank Score Trade Policy Fiscal Burden Government Intervention Monetary Policy
32 2,39 2 3,9 2,5 1

Foreign Investment Banking and Finance Wages and Prices Property Rights Regulation Informal Market
2 1 2 2 3 3,5

Source: Heritage Foundation, 2004

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