Why Set Up Your Business in the Czech Republic?
The Czech Republic, which is also known as Czechia, is a landlocked country in Central Europe bordering Austria, Germany, , and Slovakia. Home to a population of around 11 million people, Czech Republic has its location signification due to its proximity to the Europe’s industrial backbone.
An Overview of Czech Republic’s Economy
The Czech Republic economy remains one of the richest and most stable in Post-Soviet Europe and the Central and Eastern Europe (CEE). The Czech Republic’s economy is a developed export-oriented social market economy based on services, manufacturing, and innovation. Having become the member of EU in 2004, the country gains its traction as one of the popular destination for investment in the region. The economic growth in Czech Republic is strongly influenced by export demand for and flows of foreign direct investment (FDI). In addition to this, Czech Republic remains open to international trade. The automotive industry remains the largest industry in the Czech Republic, while other sectors like machinery, iron and steel production, metallurgy, chemical production, electronics, transport equipment, textiles, glass, ceramics, defence and pharmaceuticals are playing their important part in the economic growth.
Why Invest in Czech Republic?
Over the years, the Czech Republic is one of the most successful transition economies in terms of attracting foreign direct investment. So, what advantages has investing in the Czech Republic?
- Strategic Location
The Czech Republic has an excellent geo-strategic location in the centre of Europe with good access to established western and emerging eastern markets. The Czech Republic is poised to be a transit hub since the country became a member of the EU Single Market.
- Appealing Investment Climate
The Czech Republic has an open investment climate that is a key element of the country’s economy. In fact, it has attracted a huge amount of foreign direct investment (FDI) since 1990, making it one of the successful CEE countries in terms of FDI per capita. Additionally, the Czech Republic is characterised as a mature host country for FDI with low inflation, modest interest rates, stable currency, and a good rate of economic growth, all of which create the good investment climate for foreign investors.
- Competitive Advantages of the Country
The Czech Republic ranks 31st among 138 world economies in terms of competitiveness according to the 2016-2017 Global Competitiveness Report published by the World Economic Forum.
- Skilled and Well-educated Workforce
The Czech Republic has a high level of skilled workforce that combines a good level of education with strong science and engineering disciplines. In fact, the technical education in the Czech Republic has a strong reputation across the globe. The well-educated human resources create a perfect ground for both manufacturing and R&D-oriented companies.
On a final note, the Czech Republic has gained its traction as one of the most favoured destinations for foreign capital and it has been attracting high volumes of foreign direct investment (FDI). It is very clear that the main factors of the attractiveness of the Czech Republic for foreign investors are its geo-strategic location, modern infrastructure, quality of life, social stability, cost competitiveness, investment incentives, skilled workforce, and high educational level.