Czech Republic - Export Britain

Export Britain

Czech Republic

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Ease of trading across borders

Importing a standard container of goods into Czech Republic requires:

7documents
17days
£720

Introduction

The Czech Republic is one of the leading economies in Central and Eastern Europe with solid GDP growth and one of the lowest unemployment rates in Europe. The World Economic Forum’s 2016-2017 Global Competitiveness Report ranks the Czech Republic 31st among 138 world economies in terms of competitiveness. With regular ights to Prague from regional UK airports, the Czech Republic is a very accessible export destination.

Economic snapshot (% annual growth rate)

201520162017-20
GDP 4.5 2.5 2.4
Export of goods and services 7.7 6.7 4.5
Import of goods and services 8.2 6.1 5.2
Inflation 0.3 0.6 2.0
Current account balance (% of GDP) 0.9 1.5 0.4
Population 0.2 0.2 0.2
Source: IMF, World Economic Outlook Database, October 2016

Economic outlook

The Czech economy grew by a surprisingly strong 1.6% in Q4 2013. The statistical office indicated that investment was the main driver of growth. After a long period of retrenchment, Czech firms have started to raise their investment in the light of an improving external background, reflecting both rising foreign demand and a weakening exchange rate. GDP is expected to grow at a solid pace through 2014, reflecting both gradually rising domestic and external demand. 

Trade outlook

A pick-up in activity in the country’s main trading partners should lead to a rise in exports in 2014. The largest trade partners for the Czech Republic include Germany, Poland, France and the UK. To ensure economic growth, Czech Republic needs to expand widely its foreign trade, not only in the EU but also in the rest of the world.  Czech Republic’s exports to Asia were at almost constant rates, around 3 to 4% of total exports. Czech Republic’s trade structure has transformed, with trading with Asia becoming more prominent. 

Cultural tips

  • Be direct and clear in business meetings
  • Punctuality is taken very seriously
  • Business appointments should always be made in advance 

 

 


SWOT analysis

Strengths
Highly educated and ambitious workforce. Strong demand from local distributors for innovative, value-added British products. Government budget for 2016 ended with a surplus of £2 billion.
Weaknesses
Need for diversifying away from manufacturing and towards high-tech.
Opportunities
Favourable labour costs and price stability. Foreign investment incentives.
Threats
Rapidly ageing population. Sensitive to changes in the economic performance of its main export markets.

Czech Republic's trade with the UK

Sector segmentation growth

Sectors to watch:
  • computers & office equipment
  • motor vehicle bodies & part

Fastest-growing exporters into Czech Republic

Rank2012
1 South Korea
2 Saudi Arabia
3 US
4 Russia
5 Argentina
6 Poland
7 Colombia
8 Portugal
9 Thailand
10 Japan

Total merchandise trade - Leading import partners

Total merchandise trade - leading import partners
Opportunities for UK businesses

Czech Republic offers UK businesses a sophisticated market where English is widely spoken and where British products are well received. Czech Republic is located at the heart of Europe offering very good links to neighbouring markets. Significant opportunities for UK companies to enter manufacturing supply chains, especially in the automotive and electronics sector. Niche food & drink as well as other consumer products from UK are very popular. 

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Your local Chamber provides a range of export services and links to overseas markets.
Find your local Chamber here.

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