czech republic – your partner
DESCRIPTION
Czech Republic – Your Partner. Ministry of Industry and Trade www.mpo.cz Embassy of the Czech Republic in … www.aaa.bb. Basic Information. Czech Republic in General Cultural Heritage Czech Spas. Czech Republic in General. Area 79,000 km 2 Location in the very heart of Europe - PowerPoint PPT PresentationTRANSCRIPT
04/19/23
Basic Information
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Ministry of Industry and TradeMinistry of Industry and Tradewww.mpo.cz
Embassy of the Czech Republic in …Embassy of the Czech Republic in …www.aaa.bb
Czech Republic – Czech Republic – Your PartnerYour Partner
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© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Basic InformationBasic InformationCzech Republic in GeneralCzech Republic in GeneralCultural HeritageCultural HeritageCzech SpasCzech Spas
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Basic Information
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Basic Information • Macroeconomic Data •
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Czech Republic in GeneralCzech Republic in General
AreaArea 79,000 km79,000 km22
LocationLocation in the very heart of Europein the very heart of EuropePopulationPopulation 110.2 million (94% Czech)0.2 million (94% Czech)Political systemPolitical system parliamentary democracy parliamentary democracy Head of state Head of state ppresident Václav Klausresident Václav KlausCurrency Currency (CZK, koruna)(CZK, koruna)
1 USD =1 USD = app. 18 app. 18 CZK CZK; ; 1 EUR = app. 25.5 CZK1 EUR = app. 25.5 CZK
SState languagetate language CzechCzechTime zoneTime zone GMT +1GMT +1Transport Transport excellent connection, excellent connection,
5 international airports 5 international airports Membership inMembership inorganisationsorganisations IMF, WB, WTO, OECD…IMF, WB, WTO, OECD…
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Cultural HeritageCultural HeritageCultural HeritageCultural Heritage
Kutná Hora
Zelená Hora
Telč
HolašoviceLednice
200 chateaux & castles,12 UNESCO monuments
historical towns
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Basic Information
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Czech SpasCzech Spas
Czech spa tradition –over 36 spas
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© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Macroeconomic DataMacroeconomic DataOverview of the Czech EconomyOverview of the Czech EconomyGross Domestic ProductGross Domestic ProductIndustrial OutputIndustrial OutputInflationInflationEmploymentEmployment
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Macroeconomic Data
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Anti-recession Measures •Legislation • Sources
Overview of the Czech Economy…Overview of the Czech Economy…
Main characteristicsHigh economic growth in recent years – gradual catch up with the average EU GDP level (77% of EU 27 level in 2008)
Big share of manufacturing sector
Small, open economy
Strong trade and ownership links with EU
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Macroeconomic Data
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……Overview of the Czech EconomyOverview of the Czech Economy
Fast and balanced real convergence
Low inflation
External balance – trade surplus and modest current account deficit
Fiscal prudence – reduced public deficit (1,2% GDP in 2008), moderated public debt (29,4% GDP)
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Macroeconmic data
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Gross Domestic Product..Gross Domestic Product..
Peak in the half 2006 (6.9% growth)
Still good results for 2008 with significant deterioration in 4.Q 2008
2.8% growth in 2008
Czech economy in recession – contracting in two consecutive quarters: in the forth quarter 2008 (-0.1% q/q) and in the first quarter 2009 (-3.4% q/q)
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Basic Information
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……Gross Domestic ProductGross Domestic Product
Signs of recovery: 0.1% growth (q/q) in the second quarter 2009
The outlook for this year is influenced by weak demand in the euro zone with negative impact to the Czech exports
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Macroeconomic data
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Gross Domestic Product
(constant prices, y/y change, %)
Gross Domestic ProductGross Domestic ProductGross Domestic ProductGross Domestic Product
-8
-6
-4
-2
0
2
4
6
8
10
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
3.Q
4.Q
1.Q
2.Q
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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Macroeconomic Data
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Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Gross Domestic ProductGross Domestic Product
Gross Domestic Product in %(by sectors - 2008)
2,6
24,9
6,6
1,5
4,8
3
56,6
Agriculture Manufacturing IndustryBuilding Industry Mineral Wealth MiningElectricity Production and Distribution TourismServices
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Macroeconomic Data
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Industrial OutputIndustrial OutputFlat growth in 2008: 0.4% y/y growthImportant share of automotive industry (23%)Falling down since October 2008 (in 1st quarter 2009 -19.1% y/y, in 2nd quarter 2009 -18.8% y/yNew orders falling dramatically downBut signs of stabilisation in recent monthMain reasons - poor external demand, decreasing domestic demand, slowdown in private investment
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Macroeconomic Data
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Industrial OutputIndustrial OutputIndustrial Production
(y/y changes)
-30
-20
-10
0
10
20
30
40
2005
/ 1. 2.
3.
4.
5. 6.
7.
8. 9. 10.
11.
12.
200
6/1. 2.
3.
4.
5. 6.
7.
8. 9. 10.
11.
12.
2007
/1.
2.
3.
4.
5. 6. 7.
8. 9. 10.
11.
12.
2008
/1.
2.
3.
4.
5. 6. 7.
8. 9. 10.
11.
12.
2009
/1.
2. 3. 4.
5. 6.
base idices trend (average month 2005=100) industrial production not SA industrial production trend
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Macroeconomic Data
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Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Industrial OutputIndustrial OutputNew Industrial Orders
(current prices index in %)
110,3 109,3
101,0
111,8
105,8
99,1
104,8
99,8
75,9
79,6
73,3 72,2
87,0
81,6
72,5
82,1
73,0
91,7
81,6
73,472,6
81,9
91,7
73,171,0
75,4
72,5
94,093,1
103,7
97,2
103,5
109,5
98,0
104,3103,2
60
70
80
90
100
110
120
1/08 2/08 3/08 4/08 5/08 6/08 7/08 8/08 9/08 10/08 11/08 12/08 1/09 2/09 3/09 4/09 5/09 6/09
total foreign
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Macroeconomic Data
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
InflationInflation
Higher inflation in 2008 - due to administrative reasons (hike in regulated prices) and high commodity prices
Decreasing since September 2008
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Macroeconomic Data
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Anti-recession Measures •Legislation • Sources
InflationInflation
Consumer Price Index(Change in %)
98,0
99,0
100,0
101,0
102,0
103,0
104,0
105,0
106,0
107,0
108,0
1/20
06 3 5 7 9 11
1/20
07 3 5 7 9 11
1/20
08 3 5 7 9 11
1/20
09 3 5 7
Year-on-year changes Month-on-month changes Inflation rate
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Macroeconomic Data
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Anti-recession Measures •Legislation • Sources
EmploymentEmployment
Positive trend changed at the end of 2008
Since November raising unemployment due to negative development of the economy
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Macroeconomic Data
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
EmploymentEmployment
Unemployment Rate(in %)
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
Jan
uar
y
Feb
ruar
y
Mar
ch
Ap
ril
May
Jun
e
July
Au
gu
st
Sep
tem
ber
Oct
ob
er
No
vem
ber
Dec
emb
er
2006 2007 2008 2009
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© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Foreign TradeForeign TradeOverviewOverviewForeign Trade in Current PricesForeign Trade in Current PricesForeign Trade by Regions 2008 - USDForeign Trade by Regions 2008 - USDForeign Trade by Regions 2008 - EURForeign Trade by Regions 2008 - EURForeign Trade by Regions 2009 - USDForeign Trade by Regions 2009 - USDForeign Trade by Regions 2009 - EURForeign Trade by Regions 2009 - EURExports in 2008 - 2009Exports in 2008 - 2009Imports in 2008 - 2009 Imports in 2008 - 2009
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
OverviewOverview
Still good results for 2008 - 69.4 bill. CZK (2.7 bill. EUR) trade surplusExport and import falling down since October 2008New foreign orders falling dramatically down - mainly in the car industryMain reasons - in the first half of 2008 - extremely strong CZK, since the second half - decreasing external demandSigns of stabilisation and improving external demand in recent months
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Foreign Trade
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Foreign Trade in Current PricesForeign Trade in Current PricesForeign Trade
(current prices, y/y change in %, balance in bill. CZK)
-30
-20
-10
0
10
20
30
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2
2007 2008 2009
Export Import Balance
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Foreign Trade by Regions 2008 -Foreign Trade by Regions 2008 -USDUSD
Exports Imports Balance
2007 2008 Index
08/07
2007 2008 Index
08/07
2007 2008
USD mill. USD mill. USD mill.
Total 122 760 146 406 119.26 118 467 142 172 120.01 4 239 4 234
*Developed countries with a market economy 111 821 132 674 118.65 93 891 107 522 114.52 17 930 25 152
**EU countries 27 104 621 124 796 119.28 83 808 95 397 113.83 20 813 29 399
**EFTA countries 2 497 2 765 110.73 1 846 2 443 132.34 651 322
**Other developed countries with a marked economy 4 703 5 113 108.72 8 237 9 682 117.54 -3 534 -4 569
*Developing countries 4 194 4 867 116.05 6 836 8 528 124.75 -2 642 -3 661
*European transition economies 1 297 1 436 110.72 318 479 150.63 979 957
*Commonwealth independent states 4 598 6 284 136.67 7 800 12 627 161.88 -3 202 -6 343
*Other*) 795 846 106.42 9 454 12 717 134.51 -8 659 -11 871
*Unspecified 55 299 543.64 168 299 177.98 -113 0
OECD countries 107 727 127 835 118.67 93 131 106 915 114.80 14 596 20 920
Foreign Trade by Regions(2008 – final data)
*)China, North Korea, Cuba, Laos, Mongolia, Vietnam
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Foreign Trade
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Foreign Trade by Regions 2008 - EURForeign Trade by Regions 2008 - EUR
Exports Imports Balance
2007 2008 Index
08/07
2007 2008 Index
08/07
2007 2008
EUR mill. EUR mill. EUR mill.
Total 89 396 99 247 111.02 86 238 96 533 111.94 3 158 2 714
*Developed countries with a market economy 81 448 89 917 110.40 68 364 72 916 106.66 13 084 17 001
**EU countries 27 76 205 84 569 110.98 61 036 64 653 105.93 15 169 19 916
**EFTA countries 1 816 1 877 103.36 1 343 1 685 125.47 473 192
**Other developed countries with a marked economy 3 427 3 471 101.28 5 985 6 578 109.91 -2 558 -3 107
*Developing countries 3 054 3 309 108.35 4 969 5 821 117.15 -1 915 -2 512
*European transition economies 943 977 103.61 232 320 137.93 711 657
*Commonwealth independent states 3 336 4 274 128.12 5 694 8 567 150.46 -2 358 -4 293
*Other*) 575 574 99.83 6 857 8 706 126.97 -6 282 -8 132
*Unspecified 40 196 490.00 122 203 166.39 -82 -7
OECD countries 78 473 86 639 110.41 67 804 72 515 106.95 10 669 14 124
Foreign Trade by Regions(2008 – final data)
*)China, North Korea, Cuba, Laos, Mongolia, Vietnam
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Foreign Trade
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Foreign Trade by Regions 2009 - USDForeign Trade by Regions 2009 - USD
Exports Imports Balance
1-8/2008 1-8/2009 Index
09/08
1-8/2008 1-8/2009 Index
09/08
1-8/2008 1-8/2009
USD mill. USD mill. USD mill.
Total 103 620 69 660 67.23 99 198 64 581 65.10 4 422 5 079
*Developed countries with a market economy 94 222 63 437 67.33 75 802 49 390 65.16 18 420 14 047
**EU countries 27 88 684 59 480 67.07 67 604 43 391 64.18 21 080 16 089
**EFTA countries 1 926 1 559 80.94 1 468 1 440 98.09 458 119
**Other developed countries with a marked economy 3 612 2 398 66.39 6 730 4 559 67.74 -3 118 -2 161
*Developing countries 3 350 2 800 83.58 5 739 4 277 74.53 -2 389 -1 477
*European transition economies 984 547 55.59 391 212 54.22 593 335
*Commonwealth independent states 4 196 2 359 56.22 8 867 4 295 48.44 -4 671 -1 936
*Other*) 603 485 80.43 8 191 6 170 75.33 -7 588 -5 685
*Unspecified 265 32 12.08 208 237 113.94 57 -205
OECD countries 90 770 61 538 67.80 75 331 49 169 65.27 15 439 12 369
Foreign Trade by Regions(2009 - preliminary data)
*)China, North Korea, Cuba, Laos, Mongolia, Vietnam Source: Czech Statistical Office
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Foreign Trade
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Basic Information • Macroeconomic Data •
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Foreign Trade by Regions 2009 - EURForeign Trade by Regions 2009 - EUR
Exports Imports Balance
1-8/2008 1-8/2009 Index
09/08
1-8/2008 1-8/2009 Index
09/08
1-8/2008 1-8/2009
EUR mill. EUR mill. EUR mill.
Total 67 554 51 445 76.15 64 666 47 703 73.77 2 888 3 742
*Developed countries with a market economy 61 432 46 858 76.28 49 400 36 457 73.80 12 032 10 401
**EU countries 27 57 819 43 923 75.97 44 060 32 014 72.66 13 759 11 909
**EFTA countries 1 256 1 154 91.88 955 1 068 111.83 301 86
80 2 357 1 781 75.56 4 385 3 375 76.97 -2 028 -1 594
*Developing countries 2 184 2 061 94.37 3 751 3 166 84.40 -1 567 -1 105
*European transition economies 642 405 63.08 255 157 61.57 387 248
*Commonwealth independent states 2 731 1 740 63.71 5 779 3 178 54.99 -3 048 -1 438
*Other*) 394 358 90.86 5 345 4 571 85.52 -4 951 -4 213
*Unspecified 171 23 13.45 136 174 127.94 35 -151
OECD countries 59 179 45 456 76.81 49 099 36 294 73.92 10 080 9 162
Foreign Trade by Regions(2009 - preliminary data)
*)China, North Korea, Cuba, Laos, Mongolia, Vietnam
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Foreign Trade
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Exports in 2008 – 2009…Exports in 2008 – 2009…
2008 1-8/2009
% (in CZK) USD mill. EUR mill. % (in CZK) USD mill. EUR mill.
Total exports 100.00 146 406 99 247 Total exports 100.00 69 660 51 445
Europe total 92.63 135 642 91 934 Europe total 92.32 64 306 47 494
Germany 30.71 44 969 30 482 Germany 33.02 23 000 16 988
Slovakia 9.20 13 442 9 132 Slovakia 8.91 6 233 4 592
Poland 6.47 9 502 6 430 Poland 5.87 4 097 3 023
France 5.48 8 028 5 435 France 5.72 3 976 2 939
United Kingdom 4.81 7 039 4 770 United Kingdom 4.82 3 363 2 483
Africa total 0.77 1 114 760 Africa total 0.97 671 496
South Africa 0.22 317 214 South Africa 0.22 151 112
Egypt 0.16 231 158 Algeria 0.16 112 84
Algeria 0.06 91 63 Egypt 0.15 107 79
Morocco 0.06 86 58 Libya 0.11 80 58
Libya 0.04 61 41 Morocco 0.07 47 35
Main Trade Partners
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Foreign Trade
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……Exports in 2008 - 2009Exports in 2008 - 2009
2008 1-8/2009
% (in CZK) USD mill. EUR mill. % (in CZK) USD mill. EUR mill.
America total 2.47 3 602 2 451 America total 2.49 1 737 1 281
United States 1.75 2 540 1 731 United States 1.56 1 078 800
Brazil 0.22 319 215 Brazil 0.24 169 123
Mexico 0.16 227 154 Argentina 0.21 150 108
Canada 0.13 195 133 Mexico 0.16 112 82
El Salvador 0.04 52 36 Canada 0.12 85 63
Asia total 3.71 5 402 3 672 Asia total 4.00 2 792 2 060
China 0.53 778 528 China 0.65 456 336
United Arab Emirates 0.44 636 433 India 0.47 330 242
India 0.43 635 425 United Arab Emirates 0.46 321 238
Japan 0.37 550 371 Japan 0.31 214 159
Israel 0.25 361 245 Israel 0.25 176 131
Australia and Oceania total 0.24 346 235 Australia and Oceania total 0.18 122 90
Australia 0.21 306 207 Australia 0.15 103 76
New Zealand 0.02 34 23 New Zealand 0.03 18 14
Papua New Guinea 0.00 4 2 New Caledonia 0.00 0 0
Unspecified 0.19 299 196 Unspecified 0.05 32 23
Main Trade Partners
Source: Czech Statistical Office
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Foreign Trade
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Imports in 2008 – 2009…Imports in 2008 – 2009…
2008 1-8/2009
% (in CZK) USD mill. EUR mill. % (in CZK) USD mill. EUR mill.
Total imports 100.00 142 172 96 533 Total imports 100.00 64 581 47 703
Europe total 77.08 109 748 74 420 Europe total 76.25 49 311 36 394
Germany 26.73 38 319 25 814 Germany 26.62 17 247 12 716
Russian Federation 6.43 9 141 6 209 Poland 6.26 4 056 2 991
Poland 5.85 8 341 5 653 Slovakia 5.39 3 494 2 577
Slovakia 5.54 7 886 5 353 Russian Federation 5.34 3 438 2 543
Italy 4.47 6 381 4 318 Italy 4.46 2 879 2 126
Africa total 0.46 648 443 Africa total 0.43 276 204
South Africa 0.20 280 190 South Africa 0.19 121 89
Morocco 0.05 73 50 Morocco 0.06 40 30
Egypt 0.03 40 27 Egypt 0.03 22 16
Libya 0.03 33 26 Tunisia 0.03 19 14
Ivory Coast 0.02 35 24 Ivory Coast 0.02 11 8
Main Trade Partners
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Foreign Trade
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
……Imports in 2008 - 2009Imports in 2008 - 2009
2008 1-8/2009
% (in CZK) USD mill. EUR mill. % (in CZK) USD mill. EUR mill.
America total 3.06 4 336 2 949 America total 3.29 2 115 1 567
United States 2.06 2 927 1 993 United States 2.33 1 498 1 109
Brazil 0.27 383 258 Brazil 0.28 177 132
Canada 0.24 350 237 Canada 0.20 129 96
Mexico 0.19 262 181 Mexico 0.20 128 95
Argentina 0.06 82 55 Costa Rica 0.06 39 28
Asia total 19.07 26 964 18 397 Asia total 19.56 12 582 9 318
China 8.83 12 447 8 522 China 9.34 6 004 4 448
Japan 3.32 4 723 3 205 Japan 3.29 2 122 1 570
Azerbaijan 1.10 1 569 1 062 South Korea 1.21 781 578
South Korea 1.06 1 487 1 017 Thailand 1.03 663 492
Taiwan 0.92 1 301 886 Taiwan 0.89 577 426
Australia and Oceania total 0.12 177 120 Australia and Oceania total 0.09 60 44
Australia 0.11 151 102 Australia 0.08 49 36
New Zealand 0.01 19 13 New Zealand 0.01 9 7
Northern Mariana Isl. 0.00 3 2 USA Minor Outing Isl. 0.00 1 0
Unspecified 0.21 299 203 Unspecified 0.37 237 174
Main Trade Partners
Source: Czech Statistical Office
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© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
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Foreign Direct InvestmentForeign Direct Investment
Inward Foreign Direct InvestmentInward Foreign Direct InvestmentInvestment Opportunities - Year 2009Investment Opportunities - Year 2009Investment Incentives SchemeInvestment Incentives Scheme
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Foreign Direct Investment
32
Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Inward Foreign Direct InvestmentInward Foreign Direct InvestmentInflows of FDI (mill. EUR, mill. USD)
Source: Czech National Bank
3317
5933
5404 6
296
1 8
63
4 0
07
9 3
74
4 3
55
7 6
34
7 3
29
1 3
05
3718
6324
4986 5641
8 4
83
2 1
01
4 9
74
11 6
58
5 4
59
10 4
36
10 7
31
9 0
12
0
2000
4000
6000
8000
10000
12000
14000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1.Q.2009
EUR USD
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Foreign Direct Investment
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Investment Opportunities - Year 2009…Investment Opportunities - Year 2009…
Traditional Sectors of Czech IndustryAutomotive and Aerospace Industry
Electronics
Precision Engineering
Chemicals and Plastics
Sectors with High Potential for the FutureNanotechnology
Biotechnology, Life Sciences and Medical Devices
Renewable and Alternative Energy
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Foreign Direct Investment
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Investment Opportunities - Year 2009…Investment Opportunities - Year 2009…
High-tech servicesInformation and Communication Technologies, Software DevelopmentStrategic Services – Shared Service Centres, Expert and Solution Provider Centres, High-tech Repair Centres
Research and DevelopmentInnovation Activities and Applied R&D
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Foreign Direct Investment
35
Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Investment Incentives SchemeInvestment Incentives Scheme
Manufacturing investors meeting the criteria may currently apply for all or any of the following incentives:
The corporate income tax relief (full or partial) for a period of up to five years
Training and retraining subsidies
Job creation grants
Transfer of state-owned land at a discount
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© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
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LegislationLegislation
Tax System of the Czech RepublicTax System of the Czech RepublicTax Rates in the Czech RepublicTax Rates in the Czech RepublicThe Main Indirect TaxesThe Main Indirect TaxesLegal RequirementsLegal RequirementsSocial Security and Health InsuranceSocial Security and Health InsuranceProperty MarketProperty Market
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Legislation
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Tax System of the Czech RepublicTax System of the Czech RepublicThe tax system of the Czech Republic is similar to other European countriesThe corporate income tax has a rate of 20 per cent (2009)Each taxpayer may choose linear or accelerated depreciationThe terms of depreciation range from 3 to 50 yearsThe real estate tax is levied on land and buildingThe taxation period is one calendar year
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Legislation
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
Tax Rates in the Czech RepublicTax Rates in the Czech Republic
Tax Tax rate
Corporate income tax 26% (2005), 24% (2007), 21% (2008), 20% (2009)
Personal income tax 15%
Value added tax (VAT) 19% (services & goods) or 9% (reduced)
Excise duty Levied on petrol and petrol derivates, alcohol and tobacco
Road tax CZK 1 200 (cars) – CZK 50 400 (trucks)
Real estate tax According to type, location and purpose of use of the real estate
Real estate transfer tax 3%
Inheritance tax & gift taxProgressive tax rate which ranges from 1% (0.5% for inheritance tax) up to 40% (up to 20% for inheritance tax)
Energy taxLevied on supplies of electricity, natural and other gases, and solid fuels with effect from 1 January 2008
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Legislation
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
The Main Indirect Taxes…The Main Indirect Taxes…
The VAT has a basic rate of 19% and reduced rate of 9%The basic rate is levied on the majority of goods and servicesExported goods are exempt from tax with possibility of claiming a VAT refund paid on inputThe tax is paid monthly or quarterly depending on the turnover of the taxpayerExcise duties are levied on mineral oils, liquors, wine, beer and tobacco products
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Legislation
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Basic Information • Macroeconomic Data •
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Anti-recession Measures •Legislation • Sources
……The Main Indirect TaxesThe Main Indirect Taxes
The tax is paid when goods are released for consumption, i. e. when they leave a registered tax warehouse. Excise duty on tobacco product is paid through buying stamps.
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Legislation
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Legal RequirementsLegal Requirements
Starting up a businessA foreign person‘s authorization to carry on a business activity on the territory of the Czech Republic takes effect on the day as of which that person, or that person‘s organizational component, is recorded in the (Czech) Commercial Register
Exempt from this are individuals (natural persons) who have a permanent residential address in a member state of the European Union
Incorporation or establishment of a Czech legal entity is another option
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Social Security and Health InsuranceSocial Security and Health Insurance
Contribution Employer (%) Employee (%)
Health care insurance 9.0 4.5
Pensions 21.5 6.5
Unemployment 1.2 0.0
Sickness and other benefits 2.3 0.0
Total 34.0 11.0
Contributions(of gross salary)
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Anti-recession Measures •Legislation • Sources
Property MarketProperty Market
Location Standard A Standard B
Prague
Prague city centre 18.50 – 20.00 12.50 – 15.00
Inner city 14.50 – 17.00 10.00 – 13.00
Outer city 12.50 – 14.00 8.00 – 13.00
Periphery 9.00 – 12.00 8.00 – 11.00
Brno 11.00 – 13.00 7.00 – 9.00
Plzeň 9.50 – 11.00 5.00 – 6.00
Ostrava 9.50 – 12.00 4.50 – 6.00
Office Market(avg rent EUR/m2/month)
Location
Greater Prague location 4.00 – 5.00
Other Location 3.50 –4.50
Business and Logistic Parks(avg rent EUR/m2/month)
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04/19/23 44
© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Anti-recession MeasuresAnti-recession Measures
Part Part oneonePart Part twotwo
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Anti-rerecession Measures
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Part Part oneone
Lower taxes for businesses (corporate tax)
Use of money from reserve funds of ministries
EGAP (Czech ECA) and Czech Export Bank facilities support
Support to businesses in agriculture
Increase of the financing of the infrastructure
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Part Part twotwo
Reduction of social insurance contributions
Faster write off periods
Remission of advance income tax payments for small businesses
Guarantees for loans from CMZRB bank
Thermal insulation for buildings
Investment into R&D
Reduction of administrative loading of corporate sector
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04/19/23 47
© 2009 Ministry of Industry and TradeBasic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
SourcesSources
Foreign Offices - Investment SupportForeign Offices - Investment SupportSources of Useful InformationSources of Useful InformationThe Most Important WebsitesThe Most Important Websites
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Sources
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Foreign Offices - Investment SupportForeign Offices - Investment Support
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Sources
49
Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Sources of Useful InformationSources of Useful Information
CzechTrade www.czechtrade.cz
CzechInvest www.czechinvest.cz
BusinessInfo www.businesinfo.cz
Confederation of Industry of the Czech Republic www.spcr.cz
Economic Chamber of the Czech Republic www.komora.cz
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Sources
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Anti-recession Measures •Legislation • Sources
The Most Important Websites…The Most Important Websites…
General information on the Czech Republic
http://www.czech.cz Official site for the CR
Portal of the Public Administration
http://portal.gov.cz The electronic gateway for the public administration and government services
Zlaté stránky www.zlatestranky.cz Telephone and companies directory
Iuridica http://iuridica.eunet.cz Legal services in the Czech Republic
Czech National Bank www.cnb.cz Monetary, financial and macroeconomic data
Prague Stock Exchange www.pse.cz Prague Stock Exchange data
The Industrial Property Office www.upv.cz Norms, Patents and Standards
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Sources
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Anti-recession Measures •Legislation • Sources
……the Most Important Websitesthe Most Important Websites
The Grant Agency of the Czech Republic
www.gacr.cz Awards grants to the best project of basic research in all branches of science
The Register of Advertising Agencies
www.registrra.cz/rra Expert assistance in choosing and working with advertising and communication agencies in the CR
CzechTourism www.czechtourism.com
Official travel site of the Czech Republic
Portal of the Regional Information Service
www.risy.cz Information Website on the regions
Portal of the Czech Judiciary www.justice.cz Course of legal proceedings
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Basic Information • Macroeconomic Data •
Foreign Trade • Foreign Direct Investment
Anti-recession Measures •Legislation • Sources
Ladies and Gentlemen, Ladies and Gentlemen, thank you very much for your kind attentionthank you very much for your kind attention
Contact: Contact: [email protected]
Czech Republic – Czech Republic – Your PartnerYour Partner