The Comparison of Economies of the Czech Republic and Italy

This Bachelor thesis deals with comparison of the economies of the Czech Republic and Italy from the year 2004 to the present. The beginning of the traced period is the Czech Republic's accession to the European Union along with the associated economic growth of the country. Economic analysis of the two respective countries is focused on and divided into two periods where the parting line between them is the global financial crisis, which first become evident at the European economic scene in 2008. Significant attention is dedicated to the formation, progress and causes of the global financial crisis with regard to resulting explanation of changes in economic development of both countries. Analyzed elements of both economies are the main macroeconomic indicators: gross domestic product (GDP), inflation rate, rate of unemployment and balance of payments. To maintain the integrity and objectiveness of the information obtained, the Bachelor thesis describes the main factors that influenced the data. All data presented in this study comes from official statistics: Czech and Italian Statistical Offices, the European Statistical Office and the World Bank. The result of this Bachelor thesis is a comparison of the two economies within a limited period based on assessment of various macroeconomic indicators. These data are then used to calculate the economic stability of both countries in 2007, 2009 and 2014. These specific years were chosen purposefully to present all three particular sections of the monitored period. The abovementioned calculation resulted from the application of the Magic quadrangle