Czech Republi: Country Analysis

CZECH REPUBLIC: COUNTRY ANALYSIS

Executive Summary:

Czech Republic is a developing country located in central-eastern Europe with a relatively population. As an economy it is experiencing positive growth prospects with a solid banking system and stable political system. A large portion of its GDP is from exports, specifically comprising mainly of transport machinery, chemicals and intermediate manufacturing goods.

The country is currently considered one of the most attractive FDI targets in Central and Eastern Europe given its, strategic geographic location as a transport network hub, highly skilled and experienced labour force and relatively low cost structure as compared with others parts of that region. The country does however possess some hampering qualities to its attractiveness such as efficiency in the enforcement of property rights and a small and ageing population. Nevertheless, with is advancement in R&D service in recent times coupled with is strong presence of foreign investment make it a considerable option for expansion.

Czech Republic Macro Environment:

Country Description: Overall Czech Republic is considered to be developing country on the brink of emerging as a developed country. It is currently ranked 46th on the World Economic Forum’s Global Competitive Index. (E.I., 2014) and 75th on the World Bank’s 2013 ease of doing business. (USCS, 2014). Czech Republic reported a total GDP (in USD billions), of $198 and GDP per capita PPP of $26,456.79 as of February 2015 (T.E., 2014) achieving one of the highest per capita GDP in central and Eastern Europe. The E.U. accounts for more than 80% of Czech exports (SOURCE) with the country being heavily linked with Germany’s economy as it’s the country’s largest trading partner, accounting for 30% of C.R.’s exports. The service sector accounts for 60.2% of GDP (comprising of mostly R&D services and strategic services) with manufacturing accounting for 25% of GDP. Czech Republic’s major...