The economy and the environment are connected through material and energy flows. These flows are the key cause of environmental problems (together with land use and other biological and social factors) and can serve as an indirect indicator of pressure on the environment. The leading method for assessing material flows and dematerialisation at a macroeconomic level was developed during the 1990s by a number of research institutes and organisations. The result of this effort was the guide ['Eurostat (2001) 92']. This is a guide for the analysis of the total mass of annual material inputs and outputs for the whole economic system, using accounts, balances and derived indicators of material flows. The manual touches only briefly on the flows between various sectors of the economy. This article describes the application of material flow analysis (MFA) to the economy of the Czech Republic. Relevant indicators were derived on the basis of accounts and balances of material flows compiled for the Czech Republic for 1990-2000. The indicators and analysis of material flows presented here are the first results covering a long time period and a comprehensive set of material flow accounts in a transition economy. The results show that indicators of material flows decreased during the 10-year-period analysed by approximately 30-40%. Material intensity also dropped by 30% (i.e. material efficiency increased by 30%) while the material intensity of other countries such as Germany dropped by 30% in the 15-year-period. Finally it has been possible to demonstrate that economic growth as expressed by GDP has been decoupled from environmental pressure as expressed by material flow indicators. The article proposes further work that should be undertaken in MFA at macroeconomic level in the Czech Republic. In conclusion, recommendations are made on how to improve the methodology used.