1 / 52

Czech Republic – Your Partner

Find all the essential information about the Czech Republic, including its cultural heritage, spas, and macroeconomic data. Discover the country's economy, industrial output, inflation, employment, and foreign trade.

tlauren
Download Presentation

Czech Republic – Your Partner

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Basic Information Czech Republic – Your Partner Ministry of Industry and Tradewww.mpo.czEmbassy of the Czech Republic in …www.aaa.bb

  2. Basic Information Czech Republic in General Cultural Heritage Czech Spas Basic Information

  3. Basic Information Czech Republic in General Area79,000 km2 Locationin the very heart of Europe Population10.2 million (94% Czech) Political system parliamentary democracy Head of state president Václav Klaus Currency (CZK, koruna) 1 USD = app. 18 CZK; 1 EUR = app. 25.5 CZK State languageCzech Time zoneGMT +1 Transport excellent connection, 5 international airports Membership in organisations IMF, WB, WTO, OECD…

  4. Basic Information Cultural Heritage Cultural Heritage 200 chateaux & castles, 12 UNESCO monuments historical towns Telč Kutná Hora Holašovice Lednice Zelená Hora

  5. Basic Information Czech Spas Czech spa tradition – over 36 spas

  6. Macroeconomic Data Overview of the Czech Economy Gross Domestic Product Industrial Output Inflation Employment Basic Information

  7. Macroeconomic Data Overview of the Czech Economy… • Main characteristics • High economic growth in recent years – gradual catch up with the average EU GDP level (77% of EU 27 level in 2008) • Big share of manufacturing sector • Small, open economy • Strong trade and ownership links with EU

  8. Macroeconomic Data …Overview of the Czech Economy • Fast and balanced real convergence • Low inflation • External balance – trade surplus and modest current account deficit • Fiscal prudence – reduced public deficit (1,2% GDP in 2008), moderated public debt (29,4% GDP)

  9. Macroeconmic data Gross Domestic Product.. • Peak in the half 2006 (6.9% growth) • Still good results for 2008 with significant deterioration in 4.Q 2008 • 2.8% growth in 2008 • Czech economy in recession – contracting in two consecutive quarters: in the forth quarter 2008 (-0.1% q/q) and in the first quarter 2009 (-3.4% q/q)

  10. Signs of recovery: 0.1% growth (q/q) in the second quarter 2009 The outlook for this year is influenced by weak demand in the euro zone with negative impact to the Czech exports Basic Information …Gross Domestic Product

  11. Gross Domestic Product Macroeconomic data Gross Domestic Product Gross Domestic Product (constant prices, y/y change, %)

  12. Macroeconomic Data Gross Domestic Product Gross Domestic Product in % (by sectors - 2008)

  13. Industrial Output Flat growth in 2008: 0.4% y/y growth Important share of automotive industry (23%) Falling down since October 2008 (in 1st quarter 2009 -19.1% y/y, in 2nd quarter 2009 -18.8% y/y New orders falling dramatically down But signs of stabilisation in recent month Main reasons - poor external demand, decreasing domestic demand, slowdown in private investment Macroeconomic Data

  14. Industrial Output Macroeconomic Data Industrial Production (y/y changes)

  15. Industrial Output Macroeconomic Data New Industrial Orders (current prices index in %)

  16. Inflation Higher inflation in 2008 - due to administrative reasons (hike in regulated prices) and high commodity prices Decreasing since September 2008 Macroeconomic Data

  17. Inflation Macroeconomic Data Consumer Price Index (Change in %)

  18. Employment Positive trend changed at the end of 2008 Since November raising unemployment due to negative development of the economy Macroeconomic Data

  19. Employment Macroeconomic Data Unemployment Rate (in %)

  20. Foreign Trade Overview Foreign Trade in Current Prices Foreign Trade by Regions 2008 - USD Foreign Trade by Regions 2008 - EUR Foreign Trade by Regions 2009 - USD Foreign Trade by Regions 2009 - EUR Exports in 2008 - 2009 Imports in 2008 - 2009 Basic Information

  21. Foreign Trade Overview • Still good results for 2008 - 69.4 bill. CZK (2.7 bill. EUR) trade surplus • Export and import falling down since October 2008 • New foreign orders falling dramatically down - mainly in the car industry • Main reasons - in the first half of 2008 - extremely strong CZK, since the second half - decreasing external demand • Signs of stabilisation and improving external demand in recent months

  22. Foreign Trade Foreign Trade in Current Prices Foreign Trade (current prices, y/y change in %, balance in bill. CZK)

  23. Foreign Trade Foreign Trade by Regions 2008 -USD Foreign Trade by Regions (2008 – final data) *)China, North Korea, Cuba, Laos, Mongolia, Vietnam

  24. Foreign Trade by Regions 2008 - EUR Foreign Trade Foreign Trade by Regions (2008 – final data) *)China, North Korea, Cuba, Laos, Mongolia, Vietnam

  25. Foreign Trade by Regions 2009 - USD Foreign Trade Foreign Trade by Regions (2009 - preliminary data) *)China, North Korea, Cuba, Laos, Mongolia, Vietnam Source: Czech Statistical Office

  26. Foreign Trade by Regions 2009 - EUR Foreign Trade Foreign Trade by Regions (2009 - preliminary data) *)China, North Korea, Cuba, Laos, Mongolia, Vietnam

  27. Exports in 2008 – 2009… Foreign Trade Main Trade Partners

  28. …Exports in 2008 - 2009 Foreign Trade Main Trade Partners Source: Czech Statistical Office

  29. Imports in 2008 – 2009… Foreign Trade Main Trade Partners

  30. …Imports in 2008 - 2009 Foreign Trade Main Trade Partners Source: Czech Statistical Office

  31. Foreign Direct Investment Inward Foreign Direct Investment Investment Opportunities - Year 2009 Investment Incentives Scheme Foreign Trade

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

  33. Foreign Direct Investment Investment Opportunities - Year 2009… • 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

  34. Foreign Direct Investment Investment Opportunities - Year 2009… • 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

  35. Foreign Direct Investment Investment Incentives Scheme • Manufacturing investors meeting the criteria may currently apply for all or any of the following incentives: • The corporate income tax relief (full or partial) for a period of up to five years • Training and retraining subsidies • Job creation grants • Transfer of state-owned land at a discount

  36. Legislation Tax System of the Czech Republic Tax Rates in the Czech Republic The Main Indirect Taxes Legal Requirements Social Security and Health Insurance Property Market Foreign Trade

  37. The tax system of the Czech Republic is similar to other European countries The corporate income tax has a rate of 20 per cent (2009) Each taxpayer may choose linear or accelerated depreciation The terms of depreciation range from 3 to 50 years The real estate tax is levied on land and building The taxation period is one calendar year Legislation Tax System of the Czech Republic

  38. Legislation Tax Rates in the Czech Republic

  39. Legislation The Main Indirect Taxes… • The VAT has a basic rate of 19% and reduced rate of 9% • The basic rate is levied on the majority of goods and services • Exported goods are exempt from tax with possibility of claiming a VAT refund paid on input • The tax is paid monthly or quarterly depending on the turnover of the taxpayer • Excise duties are levied on mineral oils, liquors, wine, beer and tobacco products

  40. Legislation …The Main Indirect Taxes • The tax is paid when goods are released for consumption, i. e. when they leave a registered tax warehouse. Excise duty on tobacco product is paid through buying stamps.

  41. Starting up a business A foreign person‘s authorization to carry on a business activity on the territory of the Czech Republic takes effect on the day as of which that person, or that person‘s organizational component, is recorded in the (Czech) Commercial Register Exempt from this are individuals (natural persons) who have a permanent residential address in a member state of the European Union Incorporation or establishment of a Czech legal entity is another option Legislation Legal Requirements

  42. Legislation Social Security and Health Insurance Contributions (of gross salary)

  43. Legislation Property Market Office Market (avg rent EUR/m2/month) Business and Logistic Parks (avg rent EUR/m2/month)

  44. Anti-recession Measures Part one Part two Foreign Trade

  45. Lower taxes for businesses (corporate tax) Use of money from reserve funds of ministries EGAP (Czech ECA) and Czech Export Bank facilities support Support to businesses in agriculture Increase of the financing of the infrastructure Anti-rerecession Measures Part one

  46. Reduction of social insurance contributions Faster write off periods Remission of advance income tax payments for small businesses Guarantees for loans from CMZRB bank Thermal insulation for buildings Investment into R&D Reduction of administrative loading of corporate sector Anti-recession Measures Part two

  47. Sources Foreign Offices - Investment Support Sources of Useful Information The Most Important Websites Basic Information

  48. Sources Foreign Offices - Investment Support

  49. Sources Sources of Useful Information

  50. Sources The Most Important Websites…

More Related