Analysis of Macroeconomic Development – focused on contexts and sources of economic growth

Introductory note

Contents

The goal of this macroeconomic analysis is to widen the findings on economic growth. The reasons for this focus are twofold. In particular, economic performance is a topical subject playing an important role in strategic and economic and political documents such as the Convergence Programme, Strategy of Economic Growth and Strategy of Sustainable Development. Reflecting an increase in the importance of growth-promoting economic policy and outlooks of economic development, this analysis is aimed to contribute to the widening of informational and analytical background expressing situational view of fulfilling prospective intentions.

The second reason for the modified structure of this analysis is the fact that the Czech Statistical Office (CZSO) already published the report on the economic development of the CR in 2004, which was traditionally focused on the description of all principal areas of economic development. Based on this fact, this report concentrates on enlarging one of the key thematic areas, which the monitoring of contexts, determinants and conditions of economic growth.

The macroeconomic view of the questions of economic growth includes the description of factors of growth, nominal and real convergence, competitiveness, structural changes and sustainable development. Two specific points of view are being followed. The first one mirrors the development of economic performance in the context of movements of quantity and quality of sources of growth over time. The second view strives to ascertain the position of the CR concerning individual indications of sources and determinants of economic growth on the basis of international comparisons.

The structure of the subject matter contents is as follows:

1. External environment (current economic development in the EU)
2. Sources of economic growth that are indicated for main factors of production, i.e. employment, fixed capital, productivity, and other determinants of economic performance
3. Description of the course of nominal and real convergence
4. Description of demand, price and technological competitiveness
5. Structural changes in the economy related to the development of sectors, industry (CZ-NACE 10-41), household consumption, external trade and investment

Sustainable development considered from the point of view of economic, social and environmental developments