Question

1. Describe foreign debt in the Czech republic in previous years

2. Describe degree of Openess and development of net export in the czech republic in the previous years

PS: Economics

Answer 1

Explained below.

Explanation:

(A)

1. Czech Republic's debt amounted to 4495.4 billion koruna at the end of Q1 which amounted to 79.2% of the country's GDP. The above record rose by 103. 5 billion korunas. The external assets increased from CZK 595.2 billion to CZK 7656.2 billion in Q1. Despite the rise in general external debt, the country is the fastest growing in Europe at a rate of 4.2% over the last year which is an increase from 3.9% in the previous year.

2. Czech Republic is mostly a manufacturing country and most of its exports include; machinery, engineering equipment, transport equipment and pharmaceutical equipment. The major export partners include; European union which accounted for 84.1% in 2016, Germany 32,4%, Slovakia 8.4% etc. the country mostly trades with the European nations as the industry sector accounts for 37.5% in the economy followed by service industry with 60% and agriculture sector with 2.5%. The country generally has a highly diverse economy which ranks it 9^th in the world as at 2017 economic complexity index (Wadhwa et al 2017).

Czech Republic is one of the developing nation in the Europe. Since the last few years, Czech Republic shown a very high rate of growth which increases the national income of Czech Republic. As a result, foreign debt and public debt in Czech Republic will decrease.

(B) As we see that there is an increase in the growth rate of Czech Republic so it leads to an increase in in their exports and decrease in the imports because more things can be produced now in Czech Republic.