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Czech Republic Country Report

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Risk Level

Low
Moderate
Elevated
High
Very High
Severe
Extreme

Overview

Executive Summary

The government, formed in July 2018 after complicated coalition talks following the October 2017 elections, is weak and occasionally shaken by renewed allegations against Prime Minister Andrej Babiš concerning alleged corruption or business misconduct. Internal splits within the junior coalition partner ČSSD and the Communist party, which supports the minority government on a case-by-case basis, further complicate the government’s longevity and policy predictability The government promotes fiscally responsible and investment-friendly policies, and would be highly unlikely to support the Communists' anti-EU/anti-NATO agenda, maintaining a centrist policy direction with a strongly pro-Western, albeit mildly Eurosceptic trajectory. Structural reforms aimed at simplifying the business environment, increasing the effectiveness of the judicial system, and improving macroeconomic stability will represent foremost challenges, especially given the weakness of the governing coalition. Although strikes are rare, large and peaceful demonstrations against the president, government, and corruption are likely in Prague and Brno occasionally. Czech GDP growth is projected at 3.0% in 2019 (from 2.9% in 2018), but downside risks remain elevated. Factors supporting near-term growth include the solid performance of both private consumption and fixed investment. Household demand will benefit from low unemployment rates and rising wages, while investment will be driven through 2020 by EU transfers together with private investment in new technologies and automation. Current economic challenges stem from external uncertainty and the tight domestic labour market, which has threatened to drive up wages and inflation. The central bank raised interest rates seven times from August 2017 to November 2018 (to 1.75%), also affected by the weaker-than-expected koruna and rising real estate prices. Although supply limitations contributed to a jump in 2017 housing prices by nearly 12%, price pressures diminished moderately in 2018. Despite achieving surpluses in 2016–18, fiscal risks could re-emerge as a longer-term challenge given the ageing population. © 2019, IHS Markit Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Last update: January 15, 2019

Operational Outlook

The Czech Republic's strategic location close to some of Europe's largest markets (particularly Germany), low labour costs, and investment-friendly legislative framework benefit the operational environment. Transport infrastructure has improved in recent years, with more plans in the pipeline, particularly improving the Czech Republic's ground cargo connections with its regional peers. However, corruption during the tender process will continue to pose obstacles, and red tape and arbitrary bureaucracy are likely in dealings with local government officialdom. Trade unions are generally weak, and long and disruptive labour unrest remains rare, although the tightened labour market slightly raises risks.

Last update: October 25, 2018

Terrorism

Moderate

The risk of terrorist attacks staged by Islamist militants remains lower than in Western Europe. The country's small Muslim community is well-integrated, and although the country supports US foreign policy and missions, it is unlikely to become a prime target (when compared with France, United Kingdom, or the United States). Isolated motivations and works of lone individuals, including Czech nationals converted to Islam, would be more probable. Should an attack occur, government premises, foreign embassies, and Jewish quarters in Prague would be at the highest risk.

Last update: January 19, 2019

War Risks

The Czech Republic is highly unlikely to become involved in an interstate military conflict. The country pursues positive relations with its regional neighbours, as well as Russia and the United States. Although some bilateral disputes are present (for instance, the country's ties with Austria and Germany tend to flare up over the issue of the Beneš decrees and the nuclear power plant in Temelín), these are highly unlikely to result in an armed conflict. The Czech Republic is an EU and NATO member, and belongs to the regional Visegrad Four (V4) organisation alongside Poland, Hungary, and Slovakia, mitigating the risk further.

Last update: January 19, 2019

Social Stability

Moderate

The protest risks primarily stem from far-right groups that tend to organise small-scale, but frequent rallies against immigration policy and Roma communities, as well as counter-rallies against LGBT pride marches. Violence and property damage risks, particularly vandalism, are probable during these protests. Political protests are most probable during national holidays and anniversaries, affecting mainly Prague, but these are unlikely to be violent. Environmental activism tends to focus mainly on the nuclear power plants in Temelín and Dukovany and less frequently against the Czech energy provider ČEZ.

Last update: January 19, 2019

Health Risk

Elevated

Vaccines required to enter the country

No vaccinations are required to enter the country.

Vaccines recommended for all travelers

Routine vaccinations: Consult your doctor to ensure all routine vaccinations - such as for diphtheria, tetanus, polio, tuberculosis, influenza, measles, mumps, pertussis, rubella, varicella, etc. - are up to date (include booster shots if necessary).

Vaccines recommended for most travelers

Hepatitis A: The vaccine is given in two doses, six months apart, and is nearly 100 percent effective. The WHO recommends the vaccine be integrated into national routine immunization schedules for children aged one year or older.

Vaccines recommended for some travelers

Hepatitis B: The WHO recommends that all infants receive their first dose of vaccine as soon as possible after birth, preferably within 24 hours. The birth dose should be followed by two or three doses to complete the primary series. Routine booster doses are not routinely recommended for any age group.

Rabies: The rabies vaccination is typically only recommended for travel to remote areas and if the traveler will be at high risk of exposure (e.g. undertaking activities that will bring them into contact with dogs, cats, bats, or other mammals). The vaccination is administered in three doses over a three-to-four week period. Post exposure prophylaxis is also available and should be administered as soon as possible following contact with an animal suspected of being infected (e.g. bites and scratches).

Last update: October 26, 2018

Practical Information

Climate

The Czech Republic has a continental climate, with hot summers and long, cold, even harsh winters. Temperatures range from 18°C to 26°C in the summer (June to September) and from -3°C to 0°C in the winter (October to March). Temperatures will also vary in mountainous regions where winters are very rainy and snowy. It rains regularly throughout the year.

Useful Numbers

Country Code: +420
Police: 158
Fire Dept.: 150
Ambulance: 155

Electricity

Voltage: 230 V ~ 50 Hz

Outlets:

Last update: November 21, 2013