Czech Republic

Vulnerability: Low
2006 Current Account Deficit: 4.2% of GDP

With a highly diversified economy and good growth prospects, the Czech Republic is well positioned to fend off a global economic slowdown. Annual GDP growth is projected to be more than 4% from 2007 to 2010, and strong exports should remain a principal contributor to economic expansion. The country enjoys a relatively low current account deficit and external debt ratio, making it less vulnerable to tightening global credit markets. Foreign investment inflows remain strong enough to cover the account deficit, and the Czech Republic will likely remain a net creditor.