|Population||10.5 million (2013)|
|Currency||Czech koruna (CZK)|
|Official language||Czech. Slovak, German, Russian and some other minority languages are officially recognised. English is widely spoken as a foreign language.|
|Memberships||NATO, WTO, OECD, OSCE, the Council of Europe, the Visegrad Group (V4)|
|Real GDP per capita||11,500 EUR per inhabitant (2012)|
|Growth of GDP, %||-1.0% (2012). Forecast: -1.0% in 2013, 1.8% in 2014, 2.2% in 2015|
|Average gross salary||24 953 CZK / ca 990 EUR (2012)|
|VAT rate||21% – general rate; 15% – reduced rate for certain goods|
|Company Income Tax||19%|
|Top domain||.cz, .eu|
The Czech Republic builds its reputation on long industrial tradition dating back to the first half of the 20th century when former Czechoslovakia ranked one of the 12 most developed countries in Europe. Its strategic central position, proximity to wealthy Western European markets, as well as economic and political stability made it a first class target in the CEE region for a number of companies looking for qualified cost-effective labour or a new pool of consumers.
Local manufacturing with major shares in the automotive, electrical engineering/electronics and engineering industries together with fast developing service sectors such as IT and BPO made the Czech Republic one of the economic leaders of the CEE region. Similarly, the retail sector, driven by growing incomes of local citizens, which grew four times in U.S. dollar equivalent between 1998 and 2008 (from USD350 to 1,380 both due to soaring wages and appreciation of the Czech crown) has been quickly expanding and there is hardly any major retail brand missing in the market or neglecting it for further business development in the region.
In the pre-crisis period the 10-million-strong country was supported by strong macroeconomic policies, its membership in the EU and large FDI inflows. It boasted the second highest GDP per capita in the CEE region (USD 26,800) and recorded 10 years of consecutive growth, vastly exceeding the EU average. The Czech Republic entered the European Union in 2004 and it also now enjoys membership in NATO, WTO, and OECD. The country ranks 28th (very high) in the Human Development Index.
The global financial and economic recession also affected the country’s main trade partner Germany in particular, resulting in a collapse of FDI, a significant decrease in total productivity growth and rising unemployment that in turn caused a drop in consumer spending. The Czech economy revival in the future will be reflecting global recovery trends.
According to the European commission forecast in 2014 the Czech economy would grow by 1.8% and in 2015 it will further increase by 2.2%.
We have conducted various projects in market research, business partner search and data collection in the Czech Republic. Please visit Our Experience section to see the specific industries of our expertise.