Analysis and Studies - Country Analysis
Czech Republic: a look at the market
July 11th 2023
Following the end of World War I, Czechs and Slovaks from the former Austro-Hungarian Empire united to establish Czechoslovakia. However, after the war, Czechoslovakia became part of the Soviet sphere of influence following a Communist coup in February 1948. In 1989, a peaceful movement known as the "Velvet Revolution" led to the removal of the Communist Party from power, marking the beginning of democratic governance and a transition to a market-based economy. On January 1, 1993, Czechoslovakia underwent a peaceful separation, known as the "velvet divorce," resulting in the formation of two independent nations: the Czech Republic and Slovakia. The Czech Republic became a member of NATO in 1999 and joined the European Union in 2004.
A look at the Market
The Czech Republic has a robust and diverse economy within the European Union, characterized by high income levels. It is known for its advanced services sector and as an exporter of automotive products. The country engages in significant trade with other EU member states, contributing to its overall economic stability. Czechia boasts low unemployment rates and typically maintains a positive trade balance. Moreover, it places considerable investments in innovative systems and information technologies, driving further economic growth and development.
Czechia's primary exports include cars ($23.6 billion), motor vehicles, parts, and accessories (categories 8701 to 8705) ($14.1 billion), computers ($11.6 billion), broadcasting equipment ($9.94 billion), and office machine parts ($5.15 billion). These exports are mainly shipped to Germany ($70.5 billion), Slovakia ($17.8 billion), Poland ($14.7 billion), France ($10.4 billion), and Austria ($10.2 billion).
On the other hand, Czechia's major imports consist of motor vehicles, parts, and accessories (categories 8701 to 8705) ($9.56 billion), office machine parts ($7.05 billion), broadcasting equipment ($7.05 billion), cars ($4.93 billion), and computers ($4.54 billion). These imports are primarily sourced from Germany ($51.5 billion), China ($20.9 billion), Poland ($19 billion), Slovakia ($11.6 billion), and the Netherlands ($8.55 billion).
In 2021, Czechia was the world's biggest exporter of Non-optical Microscopes ($698M) and Spring, Air, and Gas Guns ($276M).
SkyMinder: Know your Business Partner
SkyMinder is the business information platform powered by CRIF, giving access to in-depth credit and financial data on companies all over the world. Thanks to our international presence and long-standing experience with local information providers, every country is available on SkyMinder, without data accessibility limits or updating issues. If you are evaluating the possibility of doing business with a company located in the Czech Republic, SkyMinder can help you assess your potential partner.
Discover more about our solutions and don't hesitate to contact us!