CZECHIA

• GDP (million US Dollar) – 296.238
• GDP Per Capita (Dollar) – 27.609
• Growth Rate (%) – 2,28
• Population – 10.730.000
• Surface Area (km2) – 78.886
• Capital – Prague

The Czech Republic is located in central Europe. The country has a population of about 10.6 million people and covers an area of 78,866 km2. It is a landlocked nation bordered by Germany, Austria, Slovakia, and Poland. Prague is the capital city and the largest city of the Czech Republic. Other major cities include Brno, Ostrava, Olomouc, Plzen, Liberec and Hradec Kralove. The country has about 1.3 million residents. The Czech Republic has one of the most stable, wealthy, and developed economies in the world. An explanation for this is the strong industrial tradition born in the 19th century. The availability of educated and skilled professionals in the automotive industry, the strategic location in central Europe, and the good infrastructural network has influenced the growth and expansion of the industrial sector. Nonetheless, other sectors of economic significance in the country include agriculture and service.

MANUFACTURING INDUSTRY

The manufacturing industry is the main pillar of the Czech’s economy. There is great output from high-tech engineering, machine engineering, and automotive engineering. The Czech Republic is the 12th largest global car exporter and has employed over 150,000 people. Statistics reveal that in the year 2010, 54.2% of the products of the automotive industry were exported to Germany, Poland, and Slovakia.

The Czech manufacturing industry, which produces about 1/3 of the GDP alone, employs about 40% of the total workforce. However, industrial production shrank due to the effect of the pandemic. In terms of production, the largest business lines in the industry are automotive, electronics, machinery and equipment, glass and defense industries. Automotive is one of the important elements of the industrial sector and economy. Many European automotive companies have investments in Czechia. Czechia is home to the world's three oldest automobile companies and is Central Europe's first automobile manufacturer. While approximately 1.5 million vehicles are produced annually on average, production has decreased to around 1 million in 2020 and 2021 because of the pause in production due to the pandemic and the chip crisis.

AUTOMOTIVE

The Czech Republic hosts one of the highest concentrations of automotive-related manufacturing and design activity in the world. With passenger car production at 107.5 vehicles per 1,000 persons, the Czech Republic has maintained its supreme position among world automotive leaders in terms of per-capita output. It is also among the fifteen largest global passenger car producers by volume. The Czech automotive industry employs more than 150,000 people and accounts for more than 20% of both Czech manufacturing output and Czech exports.

The Czech automotive center of excellence plays a key role not only in the European but also in the global perspective. Based on the country's century-long engineering tradition, good infrastructure and skilled workforce, it significantly contributes to automotive manufacturing and R&D. Over the course of last five years, these investors created over 10,000 new jobs and invested more than EUR 1.4 billion in the Czech automotive industry.

ENGINEERING INDUSTRY

Engineering forms the backbone of the Czech economy and its manufacturing base is made up of more than 1,100 companies. These companies are especially involved in the field of energy engineering, transport engineering, production of machining and shaping tools, metallurgy and production of structures and metal components. Czech engineering companies supply complete industrial equipment – i.e. turbines, machining and shaping tools, air-conditioning equipment, building machines, agriculture machines and food processing machines. The Czech Republic exports almost 90% of its engineering production, especially to EU countries, whereas its presence has also been consolidated in the Asian and Latin American markets. Production shows a growth also due to new technologies, such as nanotechnologies, sophisticated electronics, automated systems and mechatronics.

BUILDING INDUSTRY

The building industry is one of the most important pillars of the Czech economy. It represents 7% of the production of the total Czech economy, and more than 8% of all employed people work in this area. A wide range of diverse materials, products and technologies are used in the building industry. These include, for example, fasteners, insulating materials, ceramic tiles, roofing, structural frames, building chemicals, floors, windows, doors, shading techniques, building machines and many others. Czech companies involved in this sector are competitive with their products also at a global level. Czech producers are involved in roofing production, site barracks, residential, sanitary and low-energy modules, profiles, slats, tubes, plastic tubes, shading equipment, ceramic tiles, and production of dry mortar, plaster mixes, stucco and many others. Moreover they are among the most significant producers in this sector.