Prague - Czech exports dived and the jobless rate climbed in early 2009, according to government data released Monday that showed that falling demand from Western Europe was pulling down the country's export-reliant economy.

The exports plunged 24 per cent in January, the largest annual drop in the Czech Republic's 16-year history, the Czech Statistical Office said.

The unemployment rate, based on the number of jobseekers registered with state labour authorities, jumped to 7.4 per cent in February, from 6.8 per cent the previous month, according to data from the Ministry of Labour and Social Affairs.

"It shows that the Czech Republic is falling further and further into recession," said Petr Dufek, an analyst with the CSOB bank, adding that the hike in unemployment surprised him as "fast and brutal."

"People are being sacked at a speed we have not seen before," Dufek said.

The meltdown on the global financial markets bypassed the Czech Republic but the Central European country of 10.3 million is being hit by a drop in orders from its major export market, the eurozone.

The statisticians also said Monday that inflation slowed down to 2 per cent year-on-year in February, the lowest rate in nearly two years. Consumer prices grew 0.1 per cent month-on-month owing to rising fuel prices. (dpa)