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Czech republic

Czech Republic

BASIC DATA  

 

Area (km2): 78 865

Population: 10.6 million

Capital: Prague

Language: Czech

Currency: CZK

Government: Parliamentary democracy, with separate legislative, executive and judicial powers. The parliament has two chambers (Chamber of Deputies and the Senate). The president is elected by the people for a five-year term.

Member of: OECD, EU, WTO, NATO, IMF, Schengen area

Labour force: 50,1%

GDP growth rate: 4,5%

GDP per CAPITA: 18753 EUR

Annual inflation rate: 2,5%

Unemployment rate: 2,4%

Average monthly salary: 1170 EUR, 1355 USD

Export destinations:

Germany:   32,5%

Slovakia:     8,4%

Poland:       5,7%

Main foreign Exchange rate:

EUR - CZK 25,8 

USD - CZK 22,4

GBP - CZK 29,2

 

Source: Czech Statistical Office 2017 and 2018, Czech Ministry of Finance           

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Czech republic – THE country for the future

 

On 23rd January 2019, Czech government adopted a new strategy to place the Czech Republic among the most innovative countries in Europe. The strategy consists of nine chapters, on which there is a broad agreement among entrepreneurs, academicians and researchers. It puts an emphasis on research evaluation and funding and sets out the aim of 2.5 percent of GDP invested in research and development by 2025 and 3 percent by 2030.

 

Czech Business Environment

 

  • Location in the centre of Europe, gateway to both eastern and western markets, less than two hours by air from most European destinations

  • Creative, experienced and internationalized professionals at lower costs

  • High degree of entrepreneurship and good conditions for doing business (above average within EU27)

  • Regulatory and patent environment in accordance with EU standards

  • One of the world’s most attractive places to live

  • GDP per person by purchasing power parity - the highest in Central and Eastern Europe

  • Well-developed infrastructure

 

Industry 4.0 – An opportunity for investors

 

The Czech Republic is a country with one of the longest industrial traditions and it is ambition for its future to remain tied to industry. The Ministry of Industry and Trade, the academic sphere and a number of firms in the CR perceive the Industry 4.0 as the only way forward not only for the industrial sector, but also for services and the construction industry.

 

A survey conducted by the Confederation of Industry and the Electrical and Electronic Association of the CR indicates that more than two-thirds of companies see in Industry 4.0 an opportunity to increase labour productivity, flexibility and quality of production processes as well as decreasing energy intensity and consumption of raw materials and creation of new business processes. It should lead to around 25 % reduction of manufacturing costs. This sector should lead mainly to the inception of individualised mass production. Companies on the Czech market need to adopt new technological processes, such as advanced 3D printing. It will be also necessary to improve warehouse management, logistics and planning, which is an opportunity for capable and intelligent Czech people.