Following the First World War, the closely related Czechs and Slovaks of the former Austro-Hungarian Empire merged to form Czechoslovakia. During the interwar years, the new country's leaders were frequently preoccupied with meeting the demands of other ethnic minorities within the republic, most notably the Sudeten Germans and the Ruthenians (Ukrainians).

After World War II, a truncated Czechoslovakia fell within the Soviet sphere of influence.

In 1968, an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize Communist party rule and create "socialism with a human face." Anti-Soviet demonstrations the following year ushered in a period of harsh repression.

With the collapse of Soviet authority in 1989, Czechoslovakia regained its freedom through a peaceful "Velvet Revolution."

On 1 January 1993, the country underwent a "velvet divorce" into its two national components, the Czech Republic and Slovakia.

The Czech Republic joined NATO in 1999 and the European Union in 2004.

Source: CIA World Fact Book

Population: 10,211,904 (July 2009 est.)

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Age structure: 0-14 years: 13.6% (male 712,045/female 673,657) 15-64 years: 71% (male 3,641,887/female 3,604,044) 65 years and over: 15.5% (male 623,882/female 956,389) (2009 est.)

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Median age: total: 40.1 years male: 38.6 years female: 41.9 years (2008 est.)

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Population growth rate: -0.094% (2009 est.)

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Birth rate: 8.89 births/1,000 population (2008 est.)

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Death rate: 10.69 deaths/1,000 population (2008 est.)

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Net migration rate: 0.97 migrant(s)/1,000 population (2009 est.)

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Sex ratio: at birth: 1.06 male(s)/female under 15 years: 1.06 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.65 male(s)/female total population: 0.95 male(s)/female (2009 est.)

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Infant mortality rate: total: 3.79 deaths/1,000 live births male: 4.13 deaths/1,000 live births female: 3.43 deaths/1,000 live births (2009 est.)

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Life expectancy at birth: total population: 76.81 years male: 73.54 years female: 80.28 years (2009 est.)

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Total fertility rate: 1.24 children born/woman (2009 est.)

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HIV/AIDS - adult prevalence rate: less than 0.1% (2001 est.)

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HIV/AIDS - people living with HIV/AIDS: 1,500 (2007 est.)

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HIV/AIDS - deaths: fewer than 10 (2001 est.)

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Nationality: noun: Czech(s) adjective: Czech

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Ethnic groups: Czech 90.4%, Moravian 3.7%, Slovak 1.9%, other 4% (2001 census)

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Religions: Roman Catholic 26.8%, Protestant 2.1%, other 3.3%, unspecified 8.8%, unaffiliated 59% (2001 census)

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Languages: Czech 94.9%, Slovak 2%, other 2.3%, unidentified 0.8% (2001 census)

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Literacy: definition: NA total population: 99% male: 99% female: 99% (2003 est.)

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School life expectancy (primary to tertiary education): total: 15 years male: 15 years female: 15 years (2006)

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Education expenditures: 4.4% of GDP (2004)

The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe.

Maintaining an open investment climate has been a key element of the Czech Republic's transition from a communist, centrally planned economy to a functioning market economy.

As a member of the European Union, with an advantageous location in the center of Europe, a relatively low cost structure, and a well-qualified labor force, the Czech Republic is an attractive destination for foreign investment.

Prior to its EU accession in 2004, the Czech government harmonized its laws and regulations with those of the European Union. The government plans to meet the criteria for joining the eurozone around 2012.

The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and the strong growth continued throughout the first three quarters of 2008. Despite the global financial crisis, the conservative Czech financial system has remained relatively healthy.

The rate of Czech economic growth, however, began to fall in the fourth quarter of 2008, mainly due to a significant drop in demand for Czech exports in Western Europe.

This trend is expected to continue, with many analysts predicting Czech economy to contract slightly in 2009.

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GDP (purchasing power parity): $273.7 billion (2008 est.)

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GDP (official exchange rate): $217.2 billion (2008 est.)

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GDP - real growth rate: 3.9% (2008 est.)

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GDP - per capita (PPP): $26,800 (2008 est.)

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GDP - composition by sector: agriculture: 2.6% industry: 38.7% services: 58.7% (2008 est.)

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Labor force: 5.37 million (2008 est.)

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Labor force - by occupation: agriculture: 3.6% industry: 40.2% services: 56.2% (2007)

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Unemployment rate: 6% (2008)

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Household income or consumption by percentage share: lowest 10%: 4.3% highest 10%: 22.4% (1996)

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Distribution of family income - Gini index: 26 (2005)

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Investment (gross fixed): 27.8% of GDP (2008 est.)

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Budget: revenues: $94.96 billion expenditures: $99.46 billion (2008 est.)

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Public debt: 29.4% of GDP (2008 est.)

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Inflation rate (consumer prices): 3.6% (2008)

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Central bank discount rate: 1.25% (31 December 2008)

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Commercial bank prime lending rate: 5.79% (31 December 2007)

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Stock of money: $84.43 billion (31 December 2007)

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Stock of quasi money: $58.77 billion (31 December 2007)

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Stock of domestic credit: $103.9 billion (31 December 2007)

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Market value of publicly traded shares: $73.42 billion (31 December 2007)

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Agriculture - products: wheat, potatoes, sugar beets, hops, fruit; pigs, poultry

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Industries: motor vehicles, metallurgy, machinery and equipment, glass, armaments

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Industrial production growth rate: 7% (2008 est.)

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Electricity - production: 82.88 billion kWh (2007 est.)

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Electricity - consumption: 61.52 billion kWh (2006 est.)

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Electricity - exports: 26.36 billion kWh (2007 est.)

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Electricity - imports: 10.2 billion kWh (2007 est.)

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Oil - production: 13,530 bbl/day (2007 est.)

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Oil - consumption: 207,400 bbl/day (2007 est.)

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Oil - exports: 27,360 bbl/day (2005)

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Oil - imports: 224,600 bbl/day (2005)

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Oil - proved reserves: 15 million bbl (1 January 2008 est.)

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Natural gas - production: 172 million cu m (2007 est.)

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Natural gas - consumption: 8.622 billion cu m (2007 est.)

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Natural gas - exports: 402 million cu m (2007 est.)

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Natural gas - imports: 8.628 billion cu m (2007 est.)

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Natural gas - proved reserves: 3.964 billion cu m (1 January 2008 est.)

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Current account balance: -$6.46 billion (2008 est.)

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Exports: $145.8 billion f.o.b. (2008 est.)

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Exports - commodities: machinery and transport equipment 52%, raw materials and fuel 9%, chemicals 5% (2003)

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Exports - partners: Germany 30.7%, Slovakia 8.7%, Poland 5.9%, France 5.4%, UK 5.1%, Italy 4.9%, Austria 4.6% (2007)

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Imports: $141.4 billion f.o.b. (2008 est.)

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Imports - commodities: machinery and transport equipment 46%, raw materials and fuels 15%, chemicals 10% (2003)

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Imports - partners: Germany 31.8%, Netherlands 6.7%, Slovakia 6.4%, Poland 6.3%, Austria 5.1%, China 5.1%, Russia 4.5%, Italy 4.4%, France 4.1% (2007)

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Reserves of foreign exchange and gold: $37 billion (31 December 2008)

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Debt - external: $88.74 billion (31 December 2008 est.)

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Stock of direct foreign investment - at home: $107.6 billion (2008 est.)

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Stock of direct foreign investment - abroad: $7.721 billion (2008 est.)

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Exchange rates: koruny (CZK) per US dollar - 17.064 (2008), 20.53 (2007), 22.596 (2006), 23.957 (2005), 25.7 (2004)