This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.The economic situation and policies of the Czech Republic were reviewed by the Committee on 28 April 2016. The draft report was then revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 13 May 2016.The Secretariat's draft report was prepared for the Committee by Falilou Fall and Christine Lewis under the supervision of Mr. Andreas Wörgötter. The draft has benefitted from valuable background research by Martin Hronza and Zdenek Pikhart, seconded from the Ministry of Industry and Trade and Ministry of Finance respectively. Research assistance was provided by Corinne Chanteloup and Béatrice Guerard. Heloise Wickramanayake formatted and produced the layout. The previous Survey of the Czech Republic was issued in March 2014.

Growth picked up strongly in 2015 thanks to a combination of temporary effects, mostly absorption of expiring EU funds and low commodity prices, but the recovery since the global crisis has been uneven, mainly because of volatile investment. Monetary policy continues to provide economic support, and the unconventional exchange rate floor appears to have achieved its purpose. Indeed, inflation is projected to return to the target of 2% in the course of 2017, mainly driven by wage increases thanks to a strong labour market. The fiscal position is good but ageing-related spending will increase, calling for long-lasting reforms, in particular of the pension system. The Czech Republic scores well on indicators of inequality and rates of poverty are very low, although important gender equity issues need continued attention.

During twenty years of OECD membership the Czech Republic successfully adopted many best practice policies. Since the early 1990s growth has been strong, though volatile, driven by opening markets, inflows of foreign investment supported by a competitive industrial base, a favourable geographical location and good initial conditions. Until the mid-2000s income per head also grew relatively strongly, catching up toward the OECD average (). However, in the aftermath of the crisis, growth almost stopped, mainly reflecting a decline in productivity growth. Growth picked up sharply in 2015 although to a considerable extent it was on account of one-off factors, in particular exceptionally high public investment.

The objective of this annex is to review action taken since the previous Survey (March 2014) on the main recommendations from previous Surveys that are not reviewed and assessed in the current Survey.