Presentation of the 2018 OECD Economic Survey of Czech Republic

1. 2018 OECD ECONOMIC SURVEY OF THE CZECH REPUBLIC
&
ENVIRONMENTAL PERFORMANCE REVIEW 2018
Prague, July 16th 2018
@OECD
@OECDeconomy
http://www.oecd.org/eco/surveys/economic-survey-czech-republic.htm
TOWARDS MORE SUSTAINABLE AND
INCLUSIVE GROWTH

2. 2
The economy is thriving
Source: OECD (2018), OECD Economic Outlook: Statistics and Projections (database).
Real GDP growth, year on year per cent changes
-6
-4
-2
0
2
4
6
8
-6
-4
-2
0
2
4
6
8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Czech Republic OECD

3. 3
Unemployment is at a record low
Source: OECD Quarterly National Accounts (database).
Unemployment rate, % of labour force
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015 2016 2017 2018

4. 4
The exchange rate is appreciating and
inflation is around the target
Source: OECD (2018), OECD Economic outlook (database) and Thomson Reuters Datastream (database).
0.0
0.5
1.0
1.5
2.0
2.5
3.0
25.0
25.5
26.0
26.5
27.0
27.5
28.0
2013 2014 2015 2016 2017 2018
Y-o-y % changesCZK/EUR
Exchange rate (left axis) Headline inflation (right axis)

5. 5
Well-being is higher than in other
Central and Eastern European countries
Note: For each dimension indicators are normalised and averaged. CEE peers are Estonia, Hungary, Poland, the Slovak
Republic and Slovenia.
Source: OECD (2017), OECD Better Life Index, www.oecdbetterlifeindex.org.
OECD Better Life Index, 2017
Index scale 0 (worst) to 10 (best)
0
2
4
6
8
10
Income and wealth
Jobs and earnings
Housing
Work and life balance
Health status
Education and skillsSocial connections
Civic engagement and
governance
Environmental quality
Personal security
Subjective well-being
Czech Republic
OECD
CEE peers

6. 6
Poverty is low
Note: The poverty line is 60% of median household income. Household income is adjusted to take into account household size.
Source: OECD (2018), OECD Social and Welfare Statistics (database).
Population with disposable income below the poverty line,
% of population, 2015
0
5
10
15
20
25
30
0
5
10
15
20
25
30
CZE
ISL
DNK
SVK
FIN
NOR
FRA
AUT
NLD
SVN
LUX
DEU
HUN
CHE
SWE
IRL
BEL
GBR
POL
OECD
PRT
KOR
NZL
ITA
AUS
GRC
CAN
JPN
EST
ESP
LVA
CHL
USA
MEX
TUR
ISR

7. CHALLENGES TO
SUSTAINABLE GROWTH
7

8. 8
Wages are rising due to labour market
shortages
Note: 2017-preliminary; vacancies refer to numbers registered at the end of the respective year and for 2018 at the end
of the first quarter, preliminary.
Source: Czech Statistical Office, Public Database.
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016 2017 2018
CZKThousands
Vacancies registered at the employment offices (left axis)
Average monthly wages of employees (FTE) (right axis)

9. 9
Productivity is picking up but remains low
Source: OECD (2018), OECD Productivity (database).
Real GDP per person employed, growth and level
0
10
20
30
40
50
60
70
80
90
-4
-3
-2
-1
0
1
2
3
4
5
6
7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Thousand USD PPPY-o-y % change CZE, growth (lhs) OECD, growth (lhs)
CZE, level (rhs) OECD, level (rhs)

10. 10
Reconciling work and family remains
difficult for mothers of young children
Note: Mothers with young children refer to working-age mothers with at least one child aged 0 to 14 years. The employment gap
is the difference between the employment rate of men (aged 25-54 years) and that of young mothers, expressed as a percentage
of the employment rate of men.
Source: OECD (2017), Employment Outlook 2017.
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
DNK
SWE
PRT
SVN
NOR
ISR
AUT
LVA
FIN
BEL
CAN
NLD
FRA
ISL
CHE
LUX
ESP
POL
USA
DEU
OECD
IRL
EST
GBR
AUS
GRC
NZL
ITA
JPN
HUN
SVK
CZE
CHL
KOR
MEX
TUR
Employment gap of mothers with young children with respect to
men aged 25-54, %, 2015

11. 11
The population is ageing
Source: OECD (2017), Health at a Glance 2017: OECD Indicators.
Percentage of population aged 65 years and over
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
40
ISR
MEX
TUR
USA
AUS
LUX
NZL
NOR
CHL
DNK
SWE
ISL
GBR
IRL
CAN
FIN
BEL
FRA
OECD
LVA
NLD
HUN
SVK
CHE
EST
CZE
AUT
DEU
POL
SVN
ITA
KOR
GRC
PRT
ESP
JPN
2050 2015

12. 12
Fiscal revenues rely heavily on social
contributions
Source: OECD (2017), Revenue Statistics (database).
2016 or latest, % of GDP
0
5
10
15
20
25
30
35
40
45
50
0
5
10
15
20
25
30
35
40
45
50
MEX CHL USA NZL SVK ESP POL CZE OECD PRT EST SVN DEU HUN AUT FRA DNK
Social Security Contribution Other direct taxes Indirect taxes

13. 13
Ageing-related spending will increase
Source: European Commission (2018), “The 2018 Ageing Report: Economic and Budgetary Projections for the EU
Member States (2016-2070)”. Based on the reference scenario.
-6
-4
-2
0
2
4
6
8
-6
-4
-2
0
2
4
6
8
FRA LVA ITA DNK POL SWE EU28 HUN SVK NLD AUT DEU BEL CZE NOR SVN
Pensions Health care and long-term care Other
Change in gross public expenditure between 2016 and 2070,
percentage points of GDP

14. Addressing labour shortages
• Increase resources to education, skilling, reskilling and upskilling.
• Keep expanding the supply of affordable childcare facilities.
• Increase the flexibility of jobs by better enforcement of rights to part-time work,
flexible teleworking and shared jobs.
Tackling long run challenges, including the impact of an ageing society
• Keep some fiscal space to cope with future ageing-related spending.
• Rebalance tax revenues by reducing social security contributions and raising
indirect taxes (VAT through better compliance and environmental taxes).
• Link tightly retirement age to life expectancy. Broaden the financing of health
care and long-term care by expanding the base of contributions to all types of
income.
14
Key recommendations
More in the Key Policy Insights of the Economic Survey of Czech Republic 2018
and in Chapter 3 of the Environmental Performance Review

15. IMPROVING THE HEALTH
CARE SYSTEM
15

16. 16
Health outcomes have improved
Source: OECD (2018), Health statistics (database).
Life expectancy at birth in years, 2015
2.7
2.5
2.5
4.8
2.6
1.5
2.3 3.5
1.4
3.0
1.9
2.7
66
68
70
72
74
76
78
80
82
84
66
68
70
72
74
76
78
80
82
84
HUN SVK POL EST CZE CHL OECD SVN GRC PRT ISR ESP
2005 Years gained during 2005-15

17. 17
Total health care expenditure is relatively
low
Source: OECD (2017), Health at a Glance 2017: OECD Indicators, OECD Publishing, Paris.
Total health care expenditure, 2016, % of GDP
0
2
4
6
8
10
12
14
16
18
20
0
2
4
6
8
10
12
14
16
18
20
TUR
LVA
MEX
LUX
POL
EST
SVK
CZE
ISR
HUN
KOR
IRL
GRC
CHL
SVN
ISL
ITA
PRT
ESP
OECD
NZL
FIN
AUS
GBR
AUT
DNK
BEL
NOR
NLD
CAN
JPN
FRA
SWE
DEU
CHE
USA

18. 18
Health spending will increase further as
the population ages
Note: The projections do not anticipate future policy change. Health care expenditure includes long-term health care.
Non-demographic factors include e.g. technological and institutional improvements.
Source: Calculations based on data from OECD (2017), System of Health Accounts (database) and European Commission
(2018), Population projections from the Ageing Working Group by Eurostat.
Drivers of health care expenditure, % of GDP
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070
Actual
Demographic scenario (ageing only)
Expansion of morbidity
Compression of morbidity
Combination of non-demographic and demographic

19. 19
The number of doctor consultations is
high
Source: OECD (2017), Health Statistics (database).
Consultations per inhabitant, 2015 or nearest year
0
2
4
6
8
10
12
14
16
0
2
4
6
8
10
12
14
16
MEX
SWE
CHL
NZL
CHE
PRT
FIN
NOR
DNK
IRL
LUX
ISL
LVA
FRA
EST
AUT
BEL
ITA
SVN
OECD
AUS
POL
ESP
CAN
NLD
TUR
DEU
CZE
SVK
HUN
JPN
KOR

20. 20
Adverse lifestyle affects health
Source: OECD Health Statistics 2017
Litres of alcohol per capita consumed
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
TUR
ISR
MEX
NOR
CHL
JPN
SWE
GRC
ISL
ITA
NLD
CAN
FIN
USA
NZL
OECD
KOR
ESP
DNK
CHE
GBR
AUS
PRT
SVK
EST
POL
LVA
HUN
IRL
DEU
LUX
CZE
SVN
FRA
AUT
BEL

21. 21
Health care is still too hospital centred
Source: OECD (2017), OECD Health Statistics (database).
Number of hospital beds per 1 000 inhabitants
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
MEX
CHL
SWE
DNK
CAN
GBR
TUR
NZL
USA
ESP
IRL
ISR
ISL
ITA
PRT
NOR
AUS
NLD
GRC
FIN
SVN
CHE
OECD
LUX
EST
LVA
SVK
FRA
BEL
CZE
POL
HUN
AUT
DEU
KOR
JPN

22. 22
Ageing of doctors and health workers is
threatening the supply of medical care
Source: OECD (2017), Health at a Glance 2017.
Percentage of doctors aged 55 years and over in 2015
(or nearest year)
0
10
20
30
40
50
60
0
10
20
30
40
50
60
ITA
ISR
EST
FRA
LVA
BEL
DEU
ISL
LUX
HUN
DNK
CZE
SVK
JPN
USA
OECD
CHE
SWE
CAN
AUT
ESP
CHL
NZL
SVN
FIN
AUS
NLD
NOR
IRL
KOR
GBR

23. • Gradually introduce a pay-for-performance scheme for hospitals and doctors based
on a broad set of performance indicators.
• Reduce the scope of the reimbursement decree by limiting its coverage and leave
room for negotiations between insurance funds and health providers
• Align payment schemes for long-term care in health and social care setting by co-
ordinating the use of user fees.
• Continue reducing hospital beds by encouraging regions and municipalities to
restructure capacities of health services and facilities
• Strengthen the role of primary care through gate-keeping and further shift towards a
better mix of capitation fees and fee-for-service for General Practitioners.
• Increase the capacity of medical faculties and the number of students through
scholarships and ensure the sustainable financing of universities.
• Increase taxes on tobacco, alcohol and consider introducing taxes on unhealthy food
and beverages.
• Promote healthier lifestyles and further develop education, disease prevention and
screening programmes.
More in Chapter 1 of the Economic Survey of Czech Republic 2018 23
Key recommendations for improving the health
care system

24. ENVIRONMENTAL
PERFORMANCE REVIEW
OF THE CZECH REPUBLIC
Prague, July 16th 2018
@OECD
@OECD Environment
http://oe.cd/epr-czech-republic

25. 25
Good performance on some Sustainable
Development Goals
Note: This figure shows how far the Czech Republic must progress to meet the SDGs.
Source: OECD (2017), "Measuring distance to the SDG targets: An assessment of where OECD countries stand".
Czech performance compared with the OECD average, Distance to target
(0 – target achieved)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Poverty
Food
Health
Education
GenderEquality
Water
SustainableProduction
Climate
Oceans
Biodiversity
Energy
Economy
Infrastructure
Inequality
Cities
Institutions
Implementation
People Planet Prosperity Peace Partnership
OECD Average
Target

26. 26
The Czech Republic has one of the most
carbon intensive economies in the OECD
Notes: CO2 emissions from energy use only; excluding international marine and aviation bunkers; sectoral approach. GDP at 2010 prices and
purchasing power parities.
Source: IEA (2017), IEA CO2 Emissions from Fuel Combustion Statistics (database).
CO2 emissions per unit of GDP, t/1000 USD
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
EST
CAN
AUS
KOR
CZE
POL
USA
GRC
OECD
JPN
ISR
MEX
SVN
CHL
DEU
FIN
BEL
NZL
NLD
SVK
HUN
TUR
LUX
PRT
ESP
AUT
ITA
GBR
LVA
ISL
IRL
DNK
NOR
FRA
SWE
CHE
2015 2000

27. 27
A shift from coal to nuclear and
renewables
Coal
Natural gas
Nuclear
Source: IEA (2017), IEA World Energy Statistics and Balances (database).
Electricity generation by source, GWh
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
Nuclear
Coal and coal products
Natural gas
Renewables and waste 4th lowest
OECD
share

28. 28
Achieving mid and long-term climate
targets will require additional efforts
Note: Total greenhouse gas emissions excluding LULUCF.
Source: OECD(2017),"Air and climate: Greenhouse gas emissions by source", OECD Environment Statistics(database);
MOE (2017), Climate Protection Policy.
0
20
40
60
80
100
120
140
160
180
200
0
20
40
60
80
100
120
140
160
180
200
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Total GHG emissions Targets Kyoto Protocol target
Greenhouse gas emissions, Mt CO2eq

29. 29
Carbon prices are low
Oil
Coal
Natural gas
Nuclear
Note: The average effective tax rate is the price of carbon emissions resulting from excise taxes (it translates excise taxes on energy into rates
per unit of CO2 emissions from energy use).
Source: OECD (2018), Taxing Energy Use 2018: Companion to the Taxing Energy Use Database.
Average effective tax rates on CO2 from energy and carbon intensity, 2015
CHE
SWE
USA
POL
CZE KOR
AUS
CAN
EST
0
30
60
90
120
0
30
60
90
120
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
Averageeffectivetaxrates(EUR/tCO2)
Carbon intensity of GDP (kg CO2 per 2010 USD at PPP)

30. Note: Data have been updated after the finalisation of the publication.
Source: OECD (2018), OECD Environment Statistics (database). 30
The rate of mortality from air pollution is
among the highest in the OECD
Number of premature deaths due to outdoor air pollution,
per million habitants, 2016
0
200
400
600
800
1000
0
100
200
300
400
500
600
700
800
900
1000
NZL
AUS
SWE
ISL
MEX
FIN
CAN
NOR
IRL
ISR
CHE
FRA
CHL
EST
ESP
LUX
USA
DNK
KOR
OECD
TUR
PRT
JPN
GBR
NLD
AUT
SVN
ITA
BEL
DEU
GRC
CZE
SVK
POL
LVA
HUN

31. 31
Waste recovery is progressing but landfilling
remains the main treatment method
Notes: Data refer to the indicated year or to the latest available year. They may include provisional figures and estimates. Household and similar
waste collected by or for municipalities, originating mainly from households and small businesses. Includes bulky waste and separate collection.
For the specific country notes see the source database.
Source: OECD (2017), "Municipal waste", OECD Environment Statistics (database); CZSO (2017) Generation, recovery and disposal of waste.
Municipal waste management, by type of treatment, 2015
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
Landfill Incineration without energy recovery
Incineration with energy recovery Recycling and composting
Other treatment

32. 32
Car traffic volume is growing in Prague’s
outer zone
Passenger transport in Prague, 2006=100
Note: Public transport: index based on the number of passengers transported; break in time series in 2014. Traffic volume: index based on the
number of vehicles over the 24 hours of an average workday. City centre delineated at Petřín in the west, Letná in the north, Riegrovy sady in the
east and Vyšehrad in the south (the Strahov and Mrázovka tunnels lie outside the central cordon). Outer zone: volume of traffic at the entrances
of the main roads and motorways into the continually settled area of the city.
Source: City of Prague (2006-17), Prague transport yearbook.
50
75
100
125
50
75
100
125
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Public transport Outer zone road traffic volume
City centre road traffic volume

33. 33
Key recommendations 1
Towards Green growth
• Strengthen political commitment to a low-carbon economy and align the
State Energy Policy with the Paris Agreement objectives
• Introduce a carbon component in energy product taxation to reflect the
climate costs of energy use outside the EU ETS
• Increase the share of permits auctioned under the EU ETS and establish a
stable support framework for renewables development
• Tighten environmental criteria of vehicle taxes to promote fleet renewal
towards cleaner vehicles and extend distance-based charging to address air
pollution and congestion

34. 34
Key recommendations 2
Improving waste management
• Speed up the adoption of the new Waste Act
• Harmonise the national waste management information system and official
statistics on waste and materials
• Review waste-related taxation in line with the waste hierarchy
• Ensure that municipal waste fees cover the full costs of service provision
Promoting compact cities for sustainable development
• Use a functional rather than administrative approach in delimiting metropolitan
areas
• Adopt a compact, co-ordinated, connected urban development model
• Link urban transport solutions to housing and land use planning to improve
mobility and reduce air pollution
• Promote the development of brownfield sites

35. 35
For more information
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use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in
the West Bank under the terms of international law.
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the
delimitation of international frontiers and boundaries and to the name of any territory, city or area.
http://www.oecd.org/eco/surveys/economic-survey-czech-republic.htm
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