Czech Republic

As one of the wealthiest and stablest economies in CEE, the Czech Republic is also one of the most industrialised. Infrastructure is well-developed, while its GDP per capita stands at a healthy €19,200 in 2013 (85 per cent of the EU average). Its population of 10.5 million inhabitants boasts a well-educated workforce, with 72 per cent being within employable age of 15 to 64 years, while the country registered a low 7.4 per cent unemployment in 2012.

Joining the EU in 2004, the Czech Republic is split into 13 regions, along with the capital of Prague, that are closely integrated with the single market. Economic growth is strongly influenced by export demand and flows of FDI, while the country remains open to international trade. Key sectors in the region include machinery, iron and steel production; metallurgy, chemical production, electronics, transport equipment, textiles, glass, ceramics, defence and pharmaceuticals.

Meanwhile, as the Czech Republic’s largest industry in automotives experiences a downturn in demand, the country has been focussing on diversifying away from manufacturing and toward a more high-tech, services-based knowledge economy. Opportunity exists in energy, with the government looking toward reducing its dependence on highly polluting low-grade brown coal. There are investment incentives available for developing natural alternatives, not only to reduce the country’s dependence on imports from Russia via the Ukraine, but also to continue to support economic growth.

Read a more detailed article about Czech Republic economy.