1. Austrian-Czech Business Forum, 27.6.2017
CZECH ECONOMY
Austrian-Czech Business Forum,

2. Long Common History 1253-1276 Přemysl Ottokar II
Habsburg dynasty
Czech Lands as Industrial Centre of the Monarchy
Bohemians in Vienna
South Moravia was the birthplace of two Federal Presidents of Austria
Different language, but simmilar character

3. Main Characteristics of the Czech Economy
Small, open economy, considerably dependent on foreign trade.
Strong business and ownership relations to the EU.
Big portion of manufacturing sector (27% of GDP in 2016).
Long-term real convergence to the developed countries, in 2015 GDP per capita 87% of the EU average.
Low inflation, price fluctuations caused by impacts of administrative measures.
Low unemployment rate, the lowest in the EU in 2016.
The current account in surplus since 2014 again, due to the growing trade balance with goods and services.
The result of fiscal consolidation in 2016 was positive government balance and decrease of government debt.

4. Structure of the Economy
Source: CZSO, MIT

5. Structure of the Economy
Source: OECD, MIT

6. Significance of the Automotive Industry
Sales (2016)
Manufacturing of
(bil. €)
Share (%)
Motor Vehicles, Trailers and Semi-trailers
41,85
32,99
Computer, electronic and optical products
10,74
8,46
Machinery and Equipment
9,81
7,71
Rubber and Plastic Products
8,78
6,91
Electrical Equipment
8,26
6,52
Total Manufacturing
126,85
Employment (2016)
Manufacturing of
Thousand
Share (%)
Motor Vehicles, Trailers and Semi-trailers
160
17,82
Machinery and Equipment
102
11,41
Fabricated Metal Products 98
10,92
Electrical Equipment 80
8,86
Rubber and Plastic Products 71
7,89
Total Manufacturing
898
Source: CZSO, MIT

7. Value Added and Intermediate Consumption
Source: CZSO, MIT

8. Production and Export of Passenger Cars
2016 – 1,6 bil. pcs of transmission and 600 th. pcs of engines
Source: AIA

9. GDP growth and Real Convergence
Growth in 1990s driven by opening markets, FDIs
Growth trajectory since 2014
Source: CZSO, Eurostat, MIT

10. Structure of Growth High fluctuation of fixed capital formation
Source: CZSO, MIT

11. Foreign Trade High export orientation of Czech manufacturers
Source: CZSO, MIT

12. Exchange Rate and Inflation
Depreciation of the Czech crown helped exporters
Consumer prices remained low
Source: CZSO, MIT

13. Growth of Industries was Strongly Diversified
Manufacturing of motor vehicles was the main driver of industrial production in 2016.
Industrial production grew by 3,5% y/y in 2016.
Chemical industry was affected by extraordinary events in Kralupy and Záluží.
Source: CZSO, Eurostat, MIT

14. Construction The construction industry lacks large contracts
Civil engineering was affected most
Source: CZSO, Eurostat, MIT

15. Labour Market
Total employment has risen and its rate increased to 72.9% in 2016, which was the highest level ever in the history of the Czech Republic
Czech Republic reported the lowest unemployment in the European Union
Source: Eurostat, MIT

16. OECD: Better Life Index
Source: OECD

17. Economic Outlook GDP growth above 2,5 % y/y in 2017
Weakening positive contribution of net exports
Increase of government and private investments
Further decrease of unemployment
Risks: protectionism, brexit, security, housing prices

18. Activity of Ministry of Industry and Trade
Foreign trade, new legislation
Support of research, development and innovation
Operational Programme Enterprise and Innovation for Competitiveness
Education (coordination with Ministry of Education, Youth and Sports)
Export Guarantee and Insurance Corporation, Czech Export Bank
CzechInvest
CzechTrade
Czech-Moravian Guarantee and Development Bank

19. Thank you for your attention