The Czech Republic has developed a social market economy that is focused on exports and is based on services, manufacturing, and innovation. It maintains a welfare state with high incomes and the European social model. As a member of the European Union, the Czech Republic is a part of the European Union's economy because it participates in the European Single Market. Instead of the euro, it uses its own currency, the Czech koruna. The Organization for Economic Co-operation and Development (OECD) counts it among its members. The Czech Republic outperforms nations like the United States, the United Kingdom, and France by placing 12th in inequality-adjusted human development and 24th in the World Bank Human Capital Index. The Guardian called it "one of Europe's most flourishing economies."

Services make up 61% of the economy, while agriculture makes up 2%. The industry sector makes up 37%. High-tech engineering, machine and electronic manufacturing, steel production, transportation equipment (automotive, rail, and aerospace), chemicals, advanced materials, and pharmaceuticals are the main industries. Research and development, ICT and software development, nanotechnology, and life sciences are the primary services. Cereals, vegetable oils, and hops are the primary agricultural products it produces.

The GDP per capita in the Czech Republic is $46,811 at purchasing power parity and $28,077 at nominal value as of 2022.[4] As of September 2021, the unemployment rate in the Czech Republic was the lowest in the EU, at 2.6 percent, and the poverty rate is the second lowest among OECD members, after Denmark. The Czech Republic is ranked 21st on the Index of Economic Freedom, behind Chile, 24th on the Global Innovation Index, 32nd on the Global Competitiveness Report, 41st on the ease of doing business index, and 25th on the Global Enabling Trade Report, behind Canada. Germany is the largest trading partner for both import and export, followed by other EU members. According to the Economic Complexity Index for 2019, the Czech Republic has a highly diverse economy that places it seventh.