Economies of CzechRep, Slovakia 10 yrs after split.

(From Czech News Agency)

PRAGUE, Dec 1 (CTK) - The comparison of selected sectors and areas of economies of the Czech Republic and Slovak Republic 10 years after the joint state of Czechs and Slovaks ended on December 31, 1992.

Currency - After the currency split on February 8, 1993, the two countries divided the money in circulation in the ratio 2:1 in favour of the Czech Republic. Mutual payments by the convertible currencies are fully accepted as of Oct 1, 1995. At that time, 100 Slovak crowns cost Kc89.5, by 1998 the Slovak crown firmed to Kc91.6 but by December 2000 its rate had fallen and Sk100 cost Kc80 and in May this year it fell below Kc70.

After the currency crisis in the Czech Republic in May 1997, the floating rate was introduced. After that, the Slovak crown for the first time gained a stronger position. The Slovak crown introduced the floating rate after devaluation pressures in 1998.

In the past years, the Slovak crown has been moving around Sk40/EUR and the Czech crown at round Kc30/EUR.

Macroeconomic development - In general, it is better in the Czech Republic, only in the years 1996-1998 the inflation was lower in Slovakia. In 1999-2000, it was at times even ten percentage points higher than in the CzechRep.

Average unemployment has been of some 15 pct in Slovakia in the past ten years, while in the CzechRep it was just some 6 pct. Both countries registered a decrease of GDP immediately after the split. Then Slovakia did better, and in 1997 and 1998, the Czech Republic's GDP even decreased. Last year, GDP grew by the same pace of 3.3 pct in each of the countries. Per capita GDP was EUR14,800 in the Czech Republic in 2001, and in Slovakia it was EUR11,100. A similar ratio was kept also in the previous years.