Prednosti jedinstvenog tržišta EU za češke poduzetnike Basic Information ´ Prednosti jedinstvenog tržišta EU za češke poduzetnike Veleposlanstvo Republike Češke Tomáš Kuchta – gospodarski savjetnik 16.1.2019

Inflation 2001 4,1% 2002 0,6% 2003 1,0% 2004 2,8% Entry to the EU Basic Information Inflation 2001 4,1% 2002 0,6% 2003 1,0% 2004 2,8% Entry to the EU 2005 2,2% 2006 1,7% 2007 5,4% 16.1.2019

Growth of Exports y/y 2001 18,1% 2002 9,5% 2003 5,7% 2004 25,6% Basic Information Growth of Exports y/y 2001 18,1% 2002 9,5% 2003 5,7% 2004 25,6% Entry to the EU 1.5.2004 2005 16,5% 2006 20,2% 2007 18,0% 16.1.2019

Growth of Imports y/y 2001 16,5% 2002 5,8% 2003 5,1% 2004 21,4% Basic Information Growth of Imports y/y 2001 16,5% 2002 5,8% 2003 5,1% 2004 21,4% Entry to the EU 1.5.2004 2005 12,3% 2006 20,2% 2007 16,1% 16.1.2019

Balance of Trade (mil. €) Basic Information Balance of Trade (mil. €) 2001 -3 465 2002 -2 302 2003 -2 183 2004 - 839 Entry to the EU 1.5.2004 2005 +1 314 2006 +1 394 2007 +3 159 16.1.2019

Gross Domestic Product Basic Information Gross Domestic Product 2001 +2,5% 2002 +1,9% 2003 +3,6% 2004 +4,5% Entry to the EU 1.5.2004 2005 +6,3% 2006 +6,4% 2007 +5,9% 16.1.2019

Industrial production y/y Basic Information Industrial production y/y 2001 6,7% 2002 1,9% 2003 5,5% 2004 9,6% Entry to the EU 1.5.2004 2005 6,7% 2006 11,2% 2007 8,2% 16.1.2019

Industrial Production Macroeconomic Data Industrial Output / Industrial Production (y/y changes) Source: Czech Statistical Office 16.1.2019

Basic Information GDP - structure 16.1.2019

Inflation Consumer Price Index Macroeconomic Data (Change in %) Source: Czech Statistical Office 16.1.2019

Basic Information Unemployment 2001 8,9% 2002 9,8% 2003 10,3% 2004 10,3% Entry to the EU 1.5.2004 2005 9,7% 2006 7,7% 2007 6,0% 16.1.2019

Employment Unemployment Rate Macroeconomic Data (in %) 16.1.2019 Source:Ministy of Labour and \social Affairs 16.1.2019

General Debt and Balance of Budget Macroeconomic Data Public Finance General Debt and Balance of Budget Source:Eurostat 16.1.2019

Foreign Trade in Current Prices (current prices, y/y change in %, balance in bill. CZK) Source: Czech Statistical Office 16.1.2019

Foreign Trade by Regions 2009 - EUR Exports Imports Balance 2008 2009 Index 09/08 EUR mill. Total 99,274 80,788 81.4 96,533 75,037 77.7 2,714 5,751 *Developed countries with a market economy 89,917 73,066 81.3 72,916 56,618 77.6 17,001 16,448 **EU countries 27 84,569 68,410 80.9 64,653 50,165 19,916 18,245 **EFTA countries 1,878 1,728 92.0 1,685 1,468 87.1 193 260 **Other developed countries with a marked economy 3,470 2,928 84.4 6,578 4,985 75.8 -3,108 -2,057 *Developing countries 3,309 3,495 105.6 5,821 5,107 87.7 -2,512 -1,612 *European transition economies 977 701 71.8 320 228 71.3 657 473 *Commonwealth independent states 4,274 2,843 66.5 8,567 5,064 59.1 -4,293 -2,221 *Other*) 574 645 112.4 8,706 7,721 88.7 -8,132 -7,076 *Unspecified 196 38 19.4 203 299 147.3 -7 -261 OECD countries 86,639 70,810 81.7 72,515 56,432 77.8 14,124 14,378 *)China, North Korea, Cuba, Laos, Mongolia, Vietnam Source: Czech Statistical Office 16.1.2019

Main Trade Partners - import Foreign Trade Main Trade Partners - import 2008 2009   % (in CZK) USD mill. EUR mill. Total imports 100.00 142,172 96,533 104,850 75,037 Europe total 77.08 109,748 74,420 75.60 79,298 56,740 Germany 26.73 38,319 25,814 26.61 27,960 19,986 Russian Federation 6.43 9,141 6,209 Poland 6.40 6,736 4,812 5.85 8,341 5,653 Slovakia 5.43 5,709 4,081 5.54 7,886 5,353 5.17 5,395 3,873 Italy 4.47 6,381 4,318 4.39 4,596 3,292 Africa total 0.46 648 443 0.42 439 315 South Africa 0.20 280 190 0.17 181 130 Morocco 0.05 73 50 0.06 59 43 Egypt 0.03 40 27 Tunisia 0.04 38 Libya 33 26 36 Ivory Coast 0.02 35 24 Mauricius 19 13 16.1.2019

Main Trade Partners - export Basic Information Main Trade Partners - export 2008 2009   % (in CZK) USD mill. EUR mill. Total exports 100.00 146,406 99,247 112,885 80,788 Europe total 92.63 135,642 91,934 91.65 103,428 74,037 Germany 30.71 44,969 30,482 32.32 36,439 26,103 Slovakia 9.20 13,442 9,132 9.00 10,186 7,279 Poland 6.47 9,502 6,430 5.82 6,578 4,706 France 5.48 8,028 5,435 5.63 6,352 4,549 United Kingdom 4.81 7,039 4,770 4.92 5,574 3,983 Africa total 0.77 1,114 760 1.05 1,185 847 South Africa 0.22 317 214 253 182 Egypt 0.16 231 158 0.19 212 150 Algeria 0.06 91 63 0.15 159 116 Morocco 86 58 Libya 0.14 168 118 0.04 61 41 0.08 97 69 16.1.2019

Foreign Trade Balance of Payments Initially current account deficit caused by a balance of trade deficit compensated by inflow of foreign capital Pro-export effect of investment helped the balance of trade to become positive (since 2004) But the current account as a whole remained in red numbers due to outflow of dividends High share of FDI is being financed from reinvested earnings from previous investments 16.1.2019

Current Account Current Account, Trade Balance and Balance of Services Foreign Trade Current Account Current Account, Trade Balance and Balance of Services (billions of CZK) Source: Czech Statistical Office 16.1.2019

Inward Foreign Direct Investment Inflows of FDI (mill. EUR, mill. USD) Source: Czech National Bank 16.1.2019

Investment Opportunities - Year 2011… Foreign Direct Investment Investment Opportunities - Year 2011… Traditional Sectors of Czech Industry Automotive and Aerospace Industry Electronics Precision Engineering Chemicals and Plastics Sectors with High Potential for the Future Nanotechnology Biotechnology, Life Sciences and Medical Devices Renewable and Alternative Energy 16.1.2019

…Investment Opportunities - Year 2011 Foreign Direct Investment …Investment Opportunities - Year 2011 High-tech services Information and Communication Technologies, Software Development Strategic Services – Shared Service Centres, Expert and Solution Provider Centres, High-tech Repair Centres Research and Development Innovation Activities and Applied R&D 16.1.2019

Social Security and Health Insurance Legislation Social Security and Health Insurance Contributions (of gross salary) Contribution Employer (%) Employee (%) Health care insurance 9.0 4.5 Pensions 21.5 6.5 Unemployment 1.2 0.0 Sickness and other benefits 2.3 Total 34.0 11.0 16.1.2019

Property Market Office Market Business and Logistic Parks Legislation (avg rent EUR/m2/month) Business and Logistic Parks (avg rent EUR/m2/month) Location Standard A Standard B Prague Prague city centre 18.50 – 20.00 12.50 – 15.00 Inner city 14.50 – 17.00 10.00 – 13.00 Outer city 12.50 – 14.00 8.00 – 13.00 Periphery 9.00 – 12.00 8.00 – 11.00 Brno 11.00 – 13.00 7.00 – 9.00 Plzeň 9.50 – 11.00 5.00 – 6.00 Ostrava 9.50 – 12.00 4.50 – 6.00 Location Greater Prague location 4.00 – 5.00 Other Location 3.50 –4.50 16.1.2019

Basic Information CZK/€ 2001 34,083 2002 30,812 2003 31,844 2004 31,904 Entry to the EU 1.5.2004 2005 29,784 2006 28,343 2007 27,762 2011 24,586 16.1.2019

Basic Information CZK/USD 2001 38,038 2002 32,736 2003 28,227 2004 25,701 Entry to the EU 1.5.2004 2005 23,947 2006 22,609 2007 20,308 2011 19,532 16.1.2019

Structural Funds 2007 – 2013 Total 30 bill. € Basic Information 16.1.2019

Czech Republic – Your Partner Basic Information Czech Republic – Your Partner Thank you very much for your kind attention Contact: tomas_kuchta@mzv.cz 16.1.2019