Investment Climate in the Czech Republic
The Content of Slideshow Czech Republic - Basic Data Investment Climate in the Czech Republic FDI from Luxembourg to the Czech Republic
Czech Republic: Basic Data Population (2015) Labour force (2015) Unemployment (Actual for: Aug 2015) GDP p.c. in USD (PPP) (2014)
10.5 million 5.3 million 6.3% 28 466
GDP growth (2014) GDP growth (2015*)
2.0% 4.4%
Annual inflation (August 2015)
0.5%
Average monthly wage (March 2015) Export destinations (2014)
€ 997 $ 1, 054 Germany (32.0%) Slovak Rep. (8.3%) Poland (5.9%)
* current Source: Czech Statistical Office 2015, Czech Ministry of Finance April 2015, IMF 2015
Basic Economic Indicators
**Forecast Source: Ministry of Finance. Macroeconomic Forecast. April 2015
CEE Comparison of Outlook for Year 2015: Czech Republic
Slovak Republic
Poland
Hungary
Population (mil.)
10.5
5.4
38.5
9.9
GDP (%)
2.5
2.7
3.3
2.3
19,800
19,030
15,400
13,440
Unemployement (%)
6.0
13.2
9.5
7.8
Total investment (GDP %)
22.7
19.0
21.4
19.4
General Gov. Gross Debt (GDP %)
44.4
55.7
49.0
79.2
Key Performance Indicators
GDP p.c. in USD (Current Prices)
Source: IMF 2015 (World Economic Outlook Database)
Total Expenditure on R&D Percentage of GDP
Source: Eurostat, 2015
Location and Infrastructure ╌ Great geographical location ╌ Great access to both emerging eastern as well as established western markets ╌ Advanced infrastructure – densest railway network in CEE, complementary highways
Source: Road and Motorway Directorate of the Czech Republic, 2014, Czech Airport Authority, 2014 Source: CzechInvest 2015
Main Universities 2014/2015 UJEP Usti nad Labem Students: 9,143 Graduates: 1,850
ZCU Plzen Students: 12,438 Graduates: 3,155
TU Liberec Students: 7,232 Graduates: 1,673
University of Life Sciences, Prague Students: 20,438 Graduates: 5,635
Charles University in Prague Students: 47,798 Graduates: 8,577
Czech Technical University, Prague Students: 20,866 Graduates: 4,845
University of Economics, Prague Students: 16,385 Graduates: 4,668
JU Ceske Budejovice Students: 11,486 Graduates: 3,007
Source: Ministry of Education, Youth and Sports , 2015
CZECH REPUBLIC University of Hradec Kralove Students: 7,909 Graduates: 2,036
University of Pardubice Students: 9,737 Graduates: 1,968
Palacky University Olomouc Students: 21,063 Graduates: 4,760
VUT Brno Students: 21,416 Graduates: 5,637 Masaryk University Students: 34,822 Graduates: 8,909
Students: 347,339 Graduates: 88,146
OU Ostrava Students: 9,843 Graduates: 2,653 VSB-TU Ostrava Students: 17,322 Graduates: 4,551
University of Tomas Bata In Zlin Students: 10,167 Graduates: 3,096
Favourable Labour Costs ╌ Creative, innovative, skilled and experienced labour force ╌ Lower costs compared to Western Economies ╌ Steady inflow of new graduates into the labour market Average hourly wages (EUR) in 2014
Number of students and graduates at Czech technical Universities 110000
Country
EUR
100000 90000 80000
Germany
24.4
Austria
23.2
France
23.1
EU-28
18.6
United Kingdom
18.6
Czech Republic
6.9
70000 60000 50000 40000 30000 20000 10000
20 01
/2 00 20 2 02 /2 00 20 3 03 /2 00 20 4 04 /2 00 20 5 05 /2 00 20 6 06 /2 00 20 7 07 /2 00 20 8 08 /2 00 20 9 09 /2 01 20 0 10 /2 01 20 1 11 /2 01 20 2 12 /2 01 20 3 13 /2 01 20 4 14 /2 01 5
0
students
Source: CzechInvest, 2015, Eurostat 2015
graduates
Taxation in the Czech Republic Corporate income tax
19%
Personal income tax
15%
Withholding tax
15% (standard rate, may be modified by Double Tax Treaties)
Value-added tax
standard 21%, reduced 15% and lowered 10%
Real estate tax
rates vary by type, location and purpose of use
Real estate transfer tax
4% (flat rate)
Road tax
rates vary by engine capacity (passenger cars) or weight and number of axles (other commercial vehicles)
Excise tax
on gasoline, alcohol and tobacco only
Energy tax
on electricity, natural and other gases, and solid fuels
Source: PricewaterhouseCoopers, 2015
Investment Risk Rating STANDARD AND POOR´S
MOODY´S
FITCH
AA-
A1
A+
Slovakia
A
A2
A+
Poland
A-
A2
A-
Bulgaria
BBB
Baa2
BB+
Hungary
BB+
Ba1
BB+
Romania
BB+
Baa3
BBB-
Russia
BB+
Ba1
BBB-
COUNTRY Czech Republic
Note: Foreign Currency Long-Term Sovereign Debt Ratings, 8th July 2015
Source: Czech National Bank, 2015
THE 2015 IMD WORLD COMPETITIVENESS SCOREBOARD Czech Republic is at the top of the CEE countries in the competitiveness of the world economies Rank 2015 (14) 1 (1)
Country USA
Score 100.000
2 (4)
China Hong Kong
96.037
3 (3)
Singapore
94.950
4 (2)
Switzerland
91.616
5 (7)
Canada
90.410
…. 10 (6)
Germany
85.637
29 (33)
Czech Republic
70.834
33 (38)
Poland
68.758
46 (45)
Slovak Republic
57.176
48 (48)
Hungary
56.996
Source: IMD, World Competitiveness Yearbook, May 2015
Cumulative FDI Inflow by Country 2000 – 2014
Total USD: 106.01 billion Total EUR: 89.03 billion Source: Czech National Bank, 2015
Selected Luxembourg Investors in the Czech Republic PRAHA REGION ORCO Property Group HB Reavis Colt Group Transcom Worldwide Regus
LIBEREC REGION International Automotive Components
USTI REGION ArcelorMittal HRADEC KRÁLOVÉ REGION HB Reavis Takko Holding
LIBEREC USTI NAD LABEM HRADEC KRALOVE
KARLOVY VARY PLZEN
MORAVIA-SILESIA REGION ArcelorMittal PRAGUE PARDUBICE
PLZEN REGION International Automotive Components
OSTRAVA OLOMOUC CESKE BUDEJOVICE
JIHLAVA ZLIN BRNO
Source: fDi Markets 2015
SOUTH MORAVIA REGION Pegas Nonwovens Holding HB Reavis
Reasons to Invest in the Czech Republic Outstanding Geographical Location CzechInvest’s Services
Advanced Transport Infrastructure
Attractive Living Environment
Transparent Investment Incentives
Well Developed Supplier Base Source: Czech government, 2015
Highly Skilled and Educated Labour Force
Thank you for your attention. Contact us!
[email protected] www.czechinvest.org
