Czech Republich

The Czech Republic is a small prosperous country in the middle of Europe,  EC member since 2004 with intensive economic relations inside Europe, especially with Germany. The economy is driven by large export activity in many sectors. The 2008 global financial crisis hit the export sector and national GDP declined 4.7% in 2009. In 2010 and 2011 it has slowly recovered by respectively 2.3% and 1.9%. The pro capita GDP in 2011 was $ 25.900, $5.000 below EU zone average. A low inflation rate (1.9% in 2011) allows at the Central Bank to maintain low interest rates in order to stimulate the internal demand. However the European recession environment will generate constraints for months.

The Automotive industry

The automotive industry is the largest industrial sector of the country, accounting for 24% of manufacturing GDP. In the last 10 years the production grew considerably, thanks to the export quota of more than 80%. In 2011 car produced were 1.1 million and the country was the world's 16th car producer.

The national Brand, Skoda, has over 100 years of history. Now it is part of Volkswagen group. However in the country cars are produced also by TPCA, a joint venture between PSA and Toyota and by Hyundai, that built a plant in Nosovice with a yearly production capability exceeding 300.000 cars and over 3.500 people employed.

The Czech Republic is also characterized by a strong automotive suppliers sector. According to the national investment agency (CzechInvest), more than half of the largest global automotive suppliers have operations in the country. This large portfolio of suppliers gives access to an almost complete local supply chain, providing significant cost advantages. The country's skilled industrial labor force, together with its proximity to Germany and other Western European markets, secured by a stable political and economic environment, is turning the Czech Republic into a new pole of the European car industry.